FREE TRADE WAREHOUSING ZONE
A Free Trade Warehousing Zone (FTWZ) is a designated area within a country where goods can be stored, handled, and re-exported without incurring customs duties or taxes. These zones are specifically designed to facilitate international trade and logistics by providing a streamlined, duty-free environment for storage and distribution.
Key Features of FTWZs:
1.Duty-Free Storage and Operations: Goods stored in FTWZs are exempt from customs duties and taxes while within the zone. Companies can import, store, and later either export these goods or bring them into the domestic market, with customs duties applied only at the point of entry into the domestic market.
2.Enhanced Logistics and Trade Facilitation: FTWZs are strategically located near major ports, airports, or transportation hubs, offering easy access for importing and exporting goods. They are equipped with advanced infrastructure and facilities to support efficient logistics operations.
3.Flexibility in Inventory Management: Businesses benefit from flexible inventory management by deferring customs duties and taxes until goods are moved out of the FTWZ. This can lead to significant cost savings, especially for companies engaged in high volumes of international trade.
4.Support for Value-Added Activities: FTWZs allow companies to perform value-added services such as packaging, labeling, assembly, sorting, and other processing activities without incurring customs duties, as long as the goods remain within the zone.
5.Simplified Regulatory Procedures: FTWZs feature streamlined customs procedures and reduced paperwork, which can lower administrative burdens and enhance supply chain efficiency.
6.International and Domestic Trade Hub: FTWZs function as hubs for both international and domestic trade, enabling companies to consolidate shipments, shorten lead times, and improve overall supply chain management.