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Sarmurzina S.E., master student of "the public and local administration"

Karaganda economical university, Kazakhstan

 

SPECIAL ECONOMIC ZONES

 

Economic zones in various countries where the authorities seek to give the accelerated development to any region or branch carry the name of free, special, special zones or zones of foreign trade. The name better known for the Kazakhstan people – the special economic zone (SEZ).

Special economic zone - the limited territory in regions with the special legal status in relation to other territory and preferential economic terms for national or foreign businessmen. Main goal of creation of such zones - the solution of strategic problems of state development in general or the certain territory: foreign trade, all-economic, social, regional, scientific and technical tasks.

Perhaps, each ordinary citizen asked a question why SEZ necessary? To answer this question, it is necessary to consider it from two positions. I will begin with the purpose of creation of SEZ from the point of view of the government. First, this is the raising of the direct foreign capitals, advanced technologies of goods and services production. Secondly, which is much important, is the creation of new workplaces for the highly skilled personnel. Thirdly, development of export base. That will lead us to the following, much important purpose, import substitution, it fourthly. Fifthly, it is approbation of new methods of management and the work organization.

Also, we will note some purposes of creation of special economic zones from the point of view of investors:

- approaching the production to the consumer;

- the minimization of expenses connected with lack of the export and import customs duties;

- access to infrastructure;

- use of cheaper labor work;

- decrease in administrative barriers;

- development of the territory.

Free economic zones of the United Arab Emirates are better known. In 1971, after withdrawal of Great Britain from part of the territory of Arabian Peninsula, which had an exit to the Persian Gulf, there were formed the new states, including the United Arab Emirates.

Even before obtaining independence in the territory of the United Arab Emirates, there were found large accumulation of oil. The local population traditionally was engaged in cultivation of camels and horses, cultivation of date palm trees, fishing and diving to find some pearls. From the beginning of independence, the economy of the United Arab Emirates began to be based on oil and gas production, in turn; it changed also traditional life of indigenous people.

Soon governors of the United Arab Emirates realized that natural resources might run low, therefore they started looking for ways of the foreign capital raising for tourism, trade, industry development. Such decision lead them to create free economic zones.

Main advantages of free economic zones of the United Arab Emirates: the foreign investor working at its territory is the 100 percent owner of the enterprise; he exempts from payment of export-import and income taxes, income tax and all types of income (in certain cases for a period of up to 50 years). Besides, there are provided free repatriation of the capital and profit, lack of currency control.

Investors are attracted in SEZ by the accelerated procedure of registration and licensing, protection of intellectual property, the minimum tariffs for energy carriers. Jebel Ali Free Zone Authority – the United Arab Emirates first free economic zone. It was created in 1985 by the government of Dubai. Today in the United Arab Emirates, there are more than ten free economic zones of various functional orientation work. [1]

The history of creation of free economic zones in Kazakhstan begins since November, 1990 when there was adopted the law "About Free Economic Zones in Kazakh Soviet Socialist Republic". Changes were repeatedly made to this law; nowadays it carries the name "About Special Economic Zones in the Republic of Kazakhstan".

The head of state Nursultan Nazarbayev signed the law "About Special Economic Zones in RK" on July 21, 2011. It is directed on increase of management efficiency and functioning of special economic zones. The new law allows raising professional management companies in special economic zones. Besides, the package of tax privileges defined legislatively.

According to the Law of the Republic of Kazakhstan, there is a definition that the special economic zone is a part of the territory of the Republic of Kazakhstan with precisely designated borders on which the special legal regime of the special economic zone is functioning to implement top priority activities. [2]

In Kazakhstan, activity of SEZ regulates by the following regulations [3]:

• The tax code – regarding the taxation of SEZ participants;

• The law "About Special Economic Zones" - the basic law regulating activity of SEZ;

• The agreement about free (special, special) economic zones questions in the customs territory of the Customs union and customs procedure of free customs area – regarding customs regulation in SEZ (it is applied temporarily till January 1, 2017).

The offer about creation of SEZ is made in the Ministry of the industry and new technologies of the Republic of Kazakhstan (MINT) by local or central executive bodies, associations of businessmen and legal entities.

The ministry of the industry and new technologies - is the principal authorized body in the field of development and regulation of SEZ according to the Law "About Special Economic Zones". [2]

Regarding tax regulation in SEZ, there is relevant division of Tax committee acts, and regarding customs regulation, there acts the relevant division of Committee of customs control of the Ministry of Finance.

For participants of all SEZ the following privileges are provided:

• release from corporate income tax;

• release from a land tax;

• release from the property tax;

• in case of realization of the goods in the territory of the special economic zone which are completely consumed in implementation of the activity which is corresponding to the purposes of creation of special economic zones according to the inventory, determined by the Government of the Republic of Kazakhstan, it is assessed with a value added tax at the zero rate.

In our republic, there are also presented other privileges.  

Such as, the simplified order of hiring foreign labor. Delivery of permissions to the raising of foreign labor by local executive bodies made according to the legislation of the Republic of Kazakhstan, but in the simplified order without search of candidates in domestic market of work.

For a period of up to 10 years, the land plot for implementation of the project is free of charge provided to participants of SEZ. [6]

Conditions of receiving tax privileges:

1) Registration as the taxpayer in the territory of SEZ;

2) Absence of structural divisions outside SEZ;

3) Not less than 90 percent of total revenue shall make the income from realization of goods of own production on priority kinds of activity of SEZ.

In case of providing the state services in the territory of special economic zones, there is applied the principle of "one window":

1) timely and high-quality providing the state services;

2) rendering information help with provided state services.

The public services providing in the principle of "one window" is carried out by the public services centers according to the legislation of RK.

World experience of development of special economic zones classifies them by their inherent functions. The types of economic activity has tendency to be divided into trade, industrial-production, technology development, service and complex zones.

Let’s consider the description of this classification in more detail:

The Trade Zone (TZ) — the territory removed out of borders of the national customs territory. There is carrying out operations on warehousing of goods and their pre-sale preparation inside of it (packing, marking, quality control, etc.). Differ in rather fast payback. Main types [5]:

• Free ports;

• Free cities;

• Free trade zones;

• Free customs areas;

• Duty Free shops.

The Industrial and Production Zone (IPZ) - part of the national customs territory in which, there is arranged production of industrial output; thus, various privileges provided to investors. Able to serve the purposes of export orientation or import substitution. Main types:

• Zone of one branch;

• Zone of one enterprise;

• Export and production zone;

• Industrial park.

The Technology Development Zone (TDZ) - the territory removed out of borders of the national customs territory in which, there are placed research, design, design offices and the organizations. Aimed at development of research, development, and commercialization of results. Some types:

• science and technology park;

• technopolis.

The most known technology development zones, such as the Silicon Valley to the USA, science and technology park on the island of Kyushu and the city of science of Tsukuba in Japan, parks of high technologies near the large cities of Beijing and Shanghai in China.

Service zone - the territory with the preferential mode for the firms occupied with rendering financial and non-financial services (export-import transactions, operations with real estate, transportations). Main types:

• Zone of free banking services;

• Zone of free financial services;

• Zone of free insurance services;

• Zone of free touristic-recreational services;

• The offshore zone - separately, but with differences.

Complex zones. Represent zones with the preferential mode of economic activity in the territory of the certain administrative region. These are the zones of free business in Western Europe, Canada created in depressive areas, special economic zones in China, territories of a particular treatment in Argentina, Brazil. Some types [5]:

• Free zone;

• Free economic zone;

• Special economic zone.

For activation of foreign economic relations, the accelerated development of the region, support of branches of economy and the solution of social problems, raising of investments, technologies and modern management, creation of highly effective and competitive productions, there are created 9 special economic zones in the Republic of Kazakhstan by the Decree of the President of the Republic of Kazakhstan:

- SEZ "Astana — the New City" - mixed (light industry, automotive industry, aviation, chemical);

- SEZ "National Industrial Petrochemical Technology Park" - the petrochemical industry;

- SEZ "Seaport Aktau" - mixed (light industry, chemical, metallurgical industry);

- SEZ "Park of Innovative Technologies" - instrument production;

- SEZ "Ontustyk" - the light and textile industry;

- SEZ "Burabay" - tourism;

- SEZ "Pavlodar" - the chemical and petrochemical industry;

- SEZ "Saryarka" - metallurgy and mechanical engineering;

- SEZ "Horgos — East Gate" - logistics;

- SEZ "Chemical Park Taraz" - chemical industry. [7]

Special economic zones of Kazakhstan can conditionally be divided into three groups with above-mentioned definitions:

- industrial and production zones – "Seaport Aktau", "Ontustyk", "National industrial petrochemical technology park", "Pavlodar", Saryarka" and "Astana – the new city";

- the service – "Burabay", "Astana – the new city", "Horgos – East gate";

- technology development zone – "Park of information technologies".

For appropriate functioning of SEZ in our country, there was created strong legislative base, reliable investors are attracted, there was adjusted the process of granting privileges to the businessmen who are carrying out activity over here.

World experience testifies that creation of SEZ is a factor of the accelerated economic growth due to activation of the international commodity turnover, mobilization of investments, deepening of integration economic processes. For development of successful economy of our country, the government tries to create favorable climate for functioning of SEZ. Unfortunately, in the theory, everything looks perfectly, but in practice, we still should work much. In order to achieve success from the example of world experience. All "great causes" begin with the small ones. We need more practice and take this work seriously.

 

Bibliography:

1. Free economic zones of Dubai. [Site LCG]. URL:http://www .lcg-offshore.com/Freihandelszonen.428+M5d637b1e38d.0.html

2. The law of the Republic of Kazakhstan "About special economic zones in the Republic of Kazakhstan" No. 469-IV of 21.07. 2011. (with changes and additions as of 29.12.2014). [site of information system “Paragraph”]. URL:http://online.zakon.kz/Document/? doc_id=31038117

3. URL: http://business.gov.kz/ru/free-economic-zone/

4. Balabekova D.B., Medetov D. H. "Typology of free and special economic zones". [Ivan Kushnir's site of institute of economy and right]. URL:http://www .be5.biz/ekonomika1/r2012/2980.htm

5. URL: http://www .inform.kz/rus/article/2730289

6. [G-global Internet portal]. URL:http://www.group-global.org

7. [Strategy site "Kazakhstan-2050"] URL:http://strategy2050.kz/ru/search/?

query = D1%81%D1%8D%D0%B7%