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International zone

Type of extraterritorial zone

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Special economic zones

A special economic zone (SEZ) is an area in which the business and trade laws are different from the rest of the jurisdiction within which it is located. SEZs are generally established to increase foreign direct investment or facilitate export-oriented manufacturing. Depending on its purpose, an SEZ typically has less strict border control policies with regard to customs. An export processing zone will typically allow for goods manufactured for export to be exempt from excise tax and for capital goods and raw materials to be exempt from customs duties upon import, while a bonded logistics park will typically exempt a designated area from all or most customs regulations. The most extreme category of SEZ is a freeport (e.g. Luxembourg Freeport, Singapore Freeport, Geneva Freeport), in which goods stored or transhipped are treated as never having entered the host jurisdiction.

Uniquely, Svalbard is an entirely visa-free zone under the terms of the Svalbard Treaty, which recognises the sovereignty of Norway over the Arctic archipelago of Svalbard but subjects it to certain stipulations and consequently not all Norwegian law applies, including border controls. The treaty regulates the demilitarisation of the archipelago. The signatories were given equal rights to engage in commercial activities (mainly coal mining) on the islands. As of 2012, Norway and Russia are making use of this right. Similarly, simplified visa policies are in force for Iran's special economic zones of Kish and Qeshm islands, and for Iraqi Kurdistan.

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