You’ve scouted the market, found your ideal supplier, and even agreed on the price. Just as you’re about to place your order, the quotation lands in your inbox, complete with three cryptic letters next to the shipping cost: FOB, CIF, FCA, DDP.

Ten years ago, moving goods across Kenya was a patient person’s game. You’d queue for hours at customs, shuffle stacks of paper, dial numbers that rang out, and haggle over cash at every stop.

Think of Kenya’s Export Processing Zones (EPZs) as fast lanes for businesses that want to produce goods for the world. These zones are special areas, set up outside the country’s customs territory, where imported raw materials and equipment come in free of import duty and VAT. Products are made, processed, or packed here, then shipped out as exports.

If you run a business in Kenya, you’ve probably heard the terms “zero-rated” and “VAT-exempt” thrown around when talking about taxes. They sound almost the same: after all, neither one attracts the standard 16% VAT at the till.