INTRODUCTION
Export Processing Zones can be defined as Industrial Zones with special zones incentives,which are being setup to attract foreign investors. Export Processing can be defined as delineated industrial estate, which constitutes a free trade enclave in the customs and trade regime of the country. In this regime foreign manufacture firms which produce mainly for the export, benefit from certain taxand financial incentives.

The concept is known by different names in different parts of the world such as Free Trade zone, Industrial Free Zone, Maquiladoras (Mexico), Special Economic Zones (China). there are around 19 terms to describe but concept is basically same.

According to the ILO, the main purpose behind setting an EPZ is to attract investment which would not have materialized. Developed Countries established Export Processing Zones (EPZs) mainly for the purpose of promoting development of export oriented manufacturing industries. Countries look to such investment to:

	Create jobs and raise standard of living.
	For transferring new skills and expertise to local human resources.
	For boosting non traditional exports and export sector.
	For increasing Foreign Exchange earnings.
	For creating backward and forward links to increase the output and raise the standard of local enterprise that supply goods and services to the zone investors.
	For introduction of new technology.
	To use EPZs for developing backward regions and to attract industries.
	To kick start the economy as a whole.
	Stimulate strategically important sectors to the economy.