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UNIT 4

FREE ZONES

circulation in the Customs territory may be allowed into free zones for manufacturing, processing and assembly. In certain countries, the commercial and industrial activities are combined in the same free zone .

Apart from enhancing the development of a country's external trade and commerce, industrial free zones, in particular, are increasingly viewed as an effective means of attracting export-oriented industries which are expected, through their investment and operations, to provide investable resources, technology and employment to the host country. Establishment of free zones

Free zones are established by making formal provision in national legislation.

Free zones are generally established at seaports, river ports, airports and

places with similar geographical advantages. Easy access to places of entry and exit within the country eliminate the need for goods to cross the Customs territory, thereby reducing the need to apply the usual Customs controls. However, due to the location of certain free zones it may be necessary for goods to be moved across the Customs territory when travelling to/from free zones, from/to seaports, airports or land frontiers (rail and road traffic). In such situations, goods can be permitted to move under a national or international transit procedure .

Free zones may cover the entire port area where several commercial activities are permitted. Essential words and phrases:

Customs-privileged facilities благоприятные в таможенном отношении

условия

costly and cumbersome procedures дорогостоящие и обременительные

процедуры

административные требования

administrative requirements

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