Free Trade Warehousing in India is an economic policy of the Indian Government. These zones are specially intended for easing the import and export which is carried out by foreign MNCs and domestic companies. It is known as the global trading hub that offers logistics infrastructure and drives international trade.
FTWZ in India promotes generating investment and business and it enjoys the special economic zone status and is considered a foreign territory with regards to compliance and currency. No matter you are a large manufacturer or individual, you can take advantage of this zone.
There are various benefits of FTWZ in India that most people are unaware of. You should know that it lessens the costs from customs duties, taxes, and tariffs as well as progresses global market competitiveness and reduce bureaucratic regulations.
Key Highlights of Free Trade Warehousing in India-
Reduce certain duties- It allows deferral of most duties, including exemption from inventory tax. So, companies can easily do their business without duties.
Reduce inverted tariffs- Operating in an FTWZ can give you a chance to relieve from inverted tariffs. The manufacturing companies can lower or eliminate the costs associated with importing raw materials and goods.
Duty exemption on re-exports- A company importing components or raw material into the FTWZ doesn’t need to pay the customs duty.
Weekly entry savings- An importer operating through FTWZ only needs to file one Customs entry a week, decreasing bureaucratic issues and costs associated with entry filings.
Enhanced compliance, inventory tracking, and quality control- FTWZ in India enables companies to track their inventory as well as you can identify and classify goods at the warehouse in a hassle-free way.
Indefinite storage- there is a certain time limit that you can store your goods in FTWZs without falling under quota restrictions.
Zone-to-zone transfers- The Free Trade Warehousing in India can help you in many ways. It can handle transshipping operations of goods from one FTZ to another without paying Customs duties.
Moreover, India’s FTWZs enable the process of importing and exporting to and from India with the benefits of duty deferment, tax benefits, cost efficiency, and better distribution channels. Also, it allows re-export goods from India without the burden of Indian duties and taxes that are otherwise levied on goods once brought to India.
Usually, FTWZs includes operations such as trading, warehousing, packing, labelling, shrink wrapping, strapping, clubbing, consolidation, quality checking, and testing, kitting, combination packing, and so on.
There are a few FTWZs operating in India to help import and export goods. These FTWZs have been invested by the private Developers/Co-developers. However, we must say that they need more encouragement from the central government to expand their capacity.
All you just need hire a reliable and professional 3Pl service provider in India that can help you with Free Trade Warehousing in India. They will inform you all about the process that is being performed in this zone and how you can take advantage of it. Looking for the best 3PL service? You can visit www.onnsynex.com.