What is an Export Processing Zone?

An Export Processing Zone (EPZ) is a designated area within a country where goods can be manufactured, assembled, or processed for export with minimal regulatory barriers and tax incentives. These zones are designed to attract foreign investment, boost exports, and create jobs by offering favorable conditions such as reduced tariffs, streamlined customs procedures, and exemptions from certain local laws. EPZs typically focus on industries like textiles, electronics, and manufacturing, promoting economic development in the host country.