Familiarity with the benefits of investing in a special economic zone can be a very good guide for entrepreneurs and capital owners to make decisions. A special economic zone refers to a geographical area within the country’s borders, the trade laws governing which are much less restrictive than in other parts of the country. These areas have a suitable framework for entrepreneurs to enter and start their activities. Some of the main benefits of investing in special economic zones in the country include issuing construction and completion permits free of charge, importing production line machinery and office tools and furniture without customs duties, customs exemption up to the value added ceiling, and paying customs duties in excess of the value added of foreign parts in products. Also, as an example of reducing costs, it can be stated that the average price of land in a special economic zone is lower than the price of land in urban areas.
The ease of reviewing permits is another major advantage of special economic zones; in these zones, the license to earn income and produce is issued more easily by reviewing the technical justification plan and the expertise presented, rather than going through the tortuous procedures outside. In these zones, the import of equipment is possible with low customs tariffs. Equipment enters the special economic zone with appropriate customs and tax exemptions, even the cars required to travel within the special economic zone will be exempt from customs tariffs. In this place, it is possible to export and import industrial products abroad; it should be borne in mind that the exit of any goods from the special economic zone into the country’s border will be subject to customs fees, like other imported goods, but this channel also has its own advantages.
As long as the equipment and raw materials of the industry are imported with low customs tariffs, one can enjoy the benefits of this channel. If the intention is to import the manufactured product into the country’s borders, one can enjoy customs and tax exemptions in proportion to the added value created in the product. The special economic zone both provides the possibility of exporting products abroad and improves the situation of imported products and related industries. In each country, considering the potential available in each region, general policies can be adopted in the creation and management of special economic zones. These policies should be such that the relevant industries start operating in each region in accordance with its needs. In addition, special zones also require other supports. For example, if a company is going to produce a specific product that is currently imported into the country, The government must first examine whether its justification and technical plan are such that it can be concluded that starting its activities will create employment, ultimately reducing foreign exchange outflows and improving the quality of that product in the country.
Special economic zones and industrial towns are among the locations of industrial activity in the country, each of which has exemptions and incentives from the government; An industrial town is a place with a certain area and scope where an organized set of industrial, research, technology and support services units, including design, engineering, education, information, consulting and commercial, are located, and in which all or part of the infrastructure facilities and necessary services are assigned to the said units, depending on the type and size of the town and the combination of its activities. The main goal of creating industrial towns at the national level is to concentrate the country’s industrial development outside urban areas, support applied and developmental research in small industry units, and facilitate and encourage the establishment of appropriate links and organization between small, medium and large industries; Whereas a special economic zone refers to a geographical area within the country’s borders that is outside the customs territory and the trade laws governing it are largely less restrictive than in other parts of the country. The most important goal of establishing them is to establish international trade relations, produce and process goods, and re-export them in the field of non-oil goods.
Industrial estates and special zones do not have an advantage over each other in terms of tax exemptions. According to the laws governing special zones, the possibility of transferring goods from the zones to the mainland faces various restrictions; in fact, special zones are outside the boundaries of the mainland, and this has caused customs to monitor the transfer of goods at the entry and exit points of the zones. This brings with it restrictions on the transfer of goods to the mainland. Also, goods produced in the zones are allowed to enter the mainland by paying foreign raw material duties (according to the production certificate and the approval of the Value Added Commission). Of course, special zones enjoy more facilities in the field of foreign trade than other parts of the mainland.
The main difference between special zones and industrial estates is in customs and agility in issuing permits, and investment in these areas is more attractive than in industrial estates. The exemption of special zones from paying value-added taxes and duties for products that are exported abroad or consumed in other special or free zones of the country, as well as exemption from paying customs duties and commercial profits for products that are exported to other special or free zones or exported abroad, are among the ways in which special zones are distinguished from industrial estates. What distinguishes special zones from industrial estates is the trade and labor laws governing them, in such a way that the facilitation of laws in special economic zones encourages investors. In view of this, the size or smallness of the area is a secondary issue, so it is more important to pay attention to the privilege of the special economic zone, maintain it, and use it than to pay attention to the size and area of the area.
