Export Processing Zones (EPZs) refer to processing zones in which a country or region has set aside certain areas in its ports or its neighboring ports, airports and stations to provide preferential treatment such as tariff reduction or exemption, and encourage foreign enterprises to invest and set up factories in the zones to produce finished products mainly for export. The purpose of export processing zones is to attract foreign investment, introduce advanced technology and equipment, promote the development of production technology and economy in the zone, expand the development of processing industries and processing exports, and increase foreign exchange income. Export processing zones are born out of free ports or free trade zones and retain some practices of free ports or free trade zones. Generally speaking, free ports or free trade zones focus on developing entrepot trade and obtaining commercial benefits, so they are business-oriented. Export processing zones are industry-oriented by developing export processing industries to obtain industrial benefits.

Export processing zones are generally divided into two types: the first is comprehensive export processing zones, that is, various export processing industries can be operated in the zones. For example, the Bataan Export Processing Zone in the Philippines operates projects including clothing, electronics and plastic products. The second category is specialized export processing zones. In other words, only certain export processed products are allowed in this area. At present, it is generally stipulated in the tariffs of export processing zones that all enterprises that invest and build factories in export processing zones import production equipment, raw materials, fuels, spare parts, components and semi-finished products from abroad, and all their products are exempted from import tariffs when they are exported.

Bonded area refers to a specific area where the customs bonded system is implemented for the warehousing, processing and re-export trade activities of specific enterprises approved by the state. When foreign goods are deposited or imported into the bonded zone, they may not pay import tax for the time being, and if they are re-exported, they do not have to pay export tax. Foreign goods brought into the special zone can be stored, modified, classified, processed and manufactured. Therefore, in a sense, the bonded area is similar to a free port or a free trade area. In many countries, bonded areas are divided into public sector and private sector. The bonded period ranges from one month to three years. According to the different characteristics of its functions, bonded areas are classified as follows: specific bonded areas, bonded sheds, bonded warehouses, bonded factories and bonded exhibition fields.

The exchange of goods between bonded areas and non-bonded areas shall be handled in accordance with the current national import and export goods policy. China was officially approved by the State Council, and its isolation equipment has passed the acceptance of the General Administration of Customs. There are 13 bonded zones that have been put into operation, namely Shanghai Waigaoqiao, Tianjin Port, Dalian, Zhangjiagang, Shenzhen Shatoujiao, Shenzhen Futian, Fuzhou, Haikou, Xiamen Xiangyu, Guangzhou, Qingdao, Ningbo and Shantou.