There are several benefits of using a free trade zone in India for your business and these benefits depend largely upon the kind of operations that are involved in the process and the authority granted by the FTZ (foreign trade zone) and customs. The benefits you can expect from these zones for your domestic trade and international trade are discussed below:
Deferment of Duty: Excise tax and customs duties are deferred on imports as long as they are in the free trade zones and do not apply till they leave the FTZ and enter the territory of the country where they are imported. Companies can bring their goods into the free trade zones without paying duties and can stock it till 5 years.
Can Pursue business without any Permanent Establishment: To start a business in any country you need to have a setup in that country but not in the case of a Free Trade Warehousing Zones. Deemed to be a foreign territory, a FTZ is custodian of your business in India.
Hassle Free Customs Clearance: As in case of Custom Bonded Warehouse, Customs Clearance takes around 3 to 4 days but in case of Free Trade Warehousing Zone it catalyzes to 24 to 48 hrs. As the process of FTZ differentiates from CBW/General Warehousing, rules and regulations applicable here follow the least Indian Compliances.
Duty Free Zone to Zone Transfer: While transferring from one FTZ to another FTZ, no duty is charged on zone to zone transfer which in case of general export-import procedure is applicable. While most companies are focused on using FTZs for exports, FTZs can also be used to take advantage of cross docking and transferring goods from one FTZ to another with waiver of Customs duties.
Store you cargo for 5 years: A company can hold its goods to a gigantic period of 5 years with least restrictions and compliances of a country
Other benefits of using free trade zone in India for domestic trade and international trade include quota avoidance, improved cash flow, streamlined logistics, improved inventory control, reduced insurance and security costs, reduced costs of transportation, so on and so forth.
To know more visit at The Benefits of Using OSV FTZ ‘Free Trade Zone’ Services