Differences between SEZ and EPZ

•           SEZ are much larger in geographical size than EPZ.

•           SEZ has much larger scope of business than EPZ.

•           SEZ is found all the countries but EPZ are generally located in under developed or developing countries.

•           Infrastructure of SEZ consist of manufacturing units, townships, roads, hospitals, schools and other services but EPZ are confined to manufacturing establishments.

•           The benefits of SEZ are more towards the growth of domestic business where as EPZ has the main objective of developing exports business.

•           SEZ is open to all fields of business like manufacturing, trading and services but EPZ has more focus on manufacturing.

•           Tax benefits in SEZ are much more than in EPZ.

•           There is very limited accountability of export performance in SEZ but it has great influence over the business carried out in EPZ as the penalties and duty recovery is imposed in case of shortfall.

•           The consumption of raw material that is imported duty free has to be consumed over a period of 5 years in SEZ but the time period in EPZ is only 1 year.

•           Laws concerning the certification of the import goods are much more relaxed in SEZ than in EPZ.

•           Custom department has less interference in the inspection of the premises in SEZ but EPZ requires routine customs inspection of cargo.

•           FDI investment in manufacturing unite does not require sanctions from the board as it is in EPZ.