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March 3, 2022 @ 4:17 PM By Naresh Chauhan
What is FTWZ in India? FTZ or foreign trade zone, also known as the free trade zone in India, allows 100% foreign direct investment (FDI) under the automatic route, deferment in custom duties, and simplifying export-import procedures. With this blog, you can quickly get an idea about how the FTZ warehouse in India works?
About FTWZ Warehousing
When foreign companies establish operations within an FTZ, it allows them to import goods into India duty-free. Cutting taxes and duties provides a certain amount of financial freedom/opportunity costs to international companies doing business in India.
A Free Trade Zone is an international concept, enabling both Indian & foreign entities to do business in India without having any registration/license in India and avoiding the hassles of compliance and taxes while also enjoying the other benefits of Duty Deferment, Repackaging, Relabeling, Kitting, Duty-Free Re-Exports, Distribution, Temporary importation, etc.
How Does FTWZ Warehousing Work in India?
Free trade warehousing zones are a category of special economic zones set up to improve logistics infrastructure and facilitate and promote cross-border and international trade. They serve as mega trading hubs with integrated logistics infrastructure such as special storage areas, world-class material handling equipment, container yards, inland container depot, customs office, and commercial complex.
Benefits of Holding Goods in a Foreign Trade Zone
There are several benefits of holding your goods in a Foreign Trade Zone. Among the advantages of FTWZ warehousing in India, you can take advantage of free tax refunds, which means you do not have to pay taxes on imported goods as long as they’re exported within five years. This is different from duty exemptions and duty reductions since no customs duties will be paid upfront when items are brought into FTWZ warehousing.
Another larger benefit is that many companies take advantage of doing business remotely without any permanent establishment.
Conclusion
In India, the FTZ warehouse in India (foreign trade zone) is used by government authorities/foreign suppliers/contract manufacturers/importers/exporters to promote foreign trade.
The Ministry of Commerce and Industry (India) monitors these zones across major cities including Delhi NCR, Mumbai, Chennai, and Gujarat. A game-changer for importers, exporters, and re-exporters, Free Trade Warehouses are deemed foreign territories which help companies efficiently manage their supply chain, ensure faster turnaround by reducing customs-related formalities, and increasing operational efficiencies.
If you are looking for the one, you can look no further than OSV FTWZ & Logistics #1 Free Zone Company in India.
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