Free Trade Zones, (Special Economic Zones) and Export Processing Zones (EOU, EHTP, BTP, Etc.) :

The exemption of import customs duty on raw material and other equipment brought into these zones, subject to specific undertaking that the products manufactured out of these material will be exported out of India, has been found to be a more feasible and viable alternative to the manufacture-in-bonded warehouse procedure.

The shift of supervisory control from the Customs Authorities to the Administrators of the Zone, had certain inherent advantages, which were in the interests of the manufacturers and conducive to the growth of the industries.

Several ministries and departments were involved in the development and welfare of these zones –

– The Industries department offered facilities in the form of favourable policy.

– Banking department offered banking facilities including loans etc

– Railways offered quick transport facilities

– Civil supplies department looked after the marketing needs of consumer products.

– DGTD attended to the problems of technical expertise.

Customs & Excise as well as sales department provided necessary concessions and relief to make the ventures economically viable.

Over and above, there was an administrative set up, more interested in solving the problems and practical difficulties of the entrepreneurs. The administrator did not belong to or identify himself with any one of the above ministries or departments. As such he did not have any over-riding vested interest.