Features of free economic zones

Annotation: This article deals with the main types of free economic zones. Keywords: Economics, Free Economic Zones, Economic Growth, Benefits

Free economic zones can be systematized according to the functions performed, the degree of integration into the economy and the systems of benefits provided.

By function:

• 1)    Free Trade Area (FTA) - a territory outside the national customs area. Inside, operations on warehousing and presale preparation of goods (packing, marking, quality control, etc.) are organized.

• 2)    Industrial-production zone (PPP) - part of the national customs zone, within which the production of certain industrial products is organized; while investors are given all sorts of benefits.

• 3)    Technological innovation zone (TVZ) is a territory that is outside the national customs zone, within which there are research, design, design offices and organizations.¹

• 4)    Tourist and recreational zone (TRZ) - the territory on which the tourist and recreational movement is conducted - the creation, reconstruction, development of tourism and recreation infrastructure, development and provision of tourism services.

• 5)    Service area - a territory with an unhindered regime for organizations, the provision of financial and non-financial services.

• 6)    Integrated zones - are a territory with a privileged mode of economic activity in the zone of a separate administrative entity. These are zones of free enterprise in Western Europe, Canada, organized in crisis areas, special economic zones in China, territories of a specific regime in Argentina, Brazil.²

By degree of association in the economy:

• 1)    The territories united in the national economy, polarized to form links with the sectors of the national economy that are not part of the zone, and which help to solve the issues of the export issue, increase the technological degree of output, increase the quality of goods, and reimburse internal interests.

• 2)    Enclave (export-oriented) zones, in which the issue is focused on export and increase in foreign exchange profit, and communication with the domestic economy is at a minimum.

On benefit systems:

• 1)    Tax: tax "holidays" - private or absolute disposal of investors from payment of taxes on the state and ownership, VAT, etc .;

• 2)    Customs (import) - a private or absolute exemption from imported duties on semi-finished products, material, etc., imported for introduction into the zone;

• 3)    Customs (export) - a private or absolute exemption from export duties on goods produced within the zone;

• 4)    Financial - investment subsidies, state privileged loans, lowered rates for payment of utility services and hiring of industrial premises;

• 5)    Administrative - facilitated way of registration of the enterprise, facilitated way of entry and exit of foreign citizens, free export of correctly received income by foreign citizens abroad.