Abstract
The Kaohsiung Export Processing Zone (KEPZ), located at the southern port of Kaohsiung in Taiwan, Republic of China, is the oldest of three free trade zones on Taiwan. The other two are located at Nan Tze and Taichung in central Taiwan. | The KEPZ was established December 3, 1966 and is presently at a saturation point of 161 separate industries in 17 categories covering 171 acres. It offers the businessman an excellent industrial climate consisting of a controlled labor force (strikes are prohibited by Chinese Law), inexpensive labor (the average wage for a typical female laborer is approximately ten cents (US) per hour), a good location for Asian trade, the best and largest harbor facilities in Taiwan, and "free port" customs privileges. | The KEPZ is a combination of an industrial park and customs clearance area with the best features of both — raw materials or partially finished goods may be imported into the Zone, processed, and then re-exported without the payment of any customs duty on either the imported or the exported goods. The strategic location of Taiwan in relation to Japan, Australia, and Hong Kong in the Far East makes this advantage one of the strongest attractions of the zone. In order for the zone to accomplish its purpose of serving the logistical needs of its member firms, the Zone Administration established, at its inception, the Warehousing and Transportation Service Center (WTSC) to serve the many and varied logistical demands of the 161 members. The wisdom and effectiveness of this organizational unit is the subject of this work.