The ESBAS Industrial Park is an Export Processing Zone (EPZ).
An Export Processing Zone (EPZ) is an Industrial Park where most trade barriers, e.g., tariffs, duties and quotas are eliminated; government red-tape is minimized; and attractive financial incentives are offered to attract new business and international investment. EPZ’s are generally labor intensive manufacturing centers, where imported raw materials or components undergo some degree of processing before being re-exported. Many EPZ’s have evolved in recent years from assembly and simple processing venues, to become high tech and science parks, finance zones, logistics and business hubs, and even international call centers.
There are many types of Export Processing Zones: Special Economic Zones, Free Zones, Bonded Warehouses, Free Ports, Custom Zones, etc. ESBAS is an EPZ that is also an International Free Zone.
A Free Zone (FZ) is an area enclosed by a fence with Customs’ supervised entry and exit points, that is not considered to be within the host country. It is where certain economic or fiscal advantages are granted to facilitate manufacturing and world market trade. While no two Free Zones are precisely the same, the host economy gains foreign exchange earnings; employment growth; foreign capital; advanced technology; labor management skills, and linkages between Zone industries and the domestic economy. The resident zone companies gain proximity to important international markets; generally lower costs, skilled labor; no duties or tariffs; rich financial incentives; and one-stop support services …all contributing to a significant reduction in the risks and costs of doing business.
It is generally accepted that the first modern-day EPZ/Free Zone was established in 1951 in Puerto Rico (Operation Bootstrap) to attract manufacturing and build an export economy. Today, it is projected that there are approximately 3,000 Free Zones world-wide, in more than 120 countries. There are 19 Free Zones in Turkey. They have generated a trade volume of $20 billion USD in 2011.