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What is FREE TRADE WAREHOUSING ZONE

Free Trade Warehousing Zone, a Special Category of Special Economic Zone, can be a 'stand-alone or a demarcated area within a sector-specific or multiproduct specific SEZ. FTWZ is a deemed Foreign Territory with special status and benefits. It is a dedicated platform for warehousing and trading, governed by SEZ act 2005 & Rules 2006.

FTWZ is a Single window Platform for Importation, Exportation, Duty & Tax deferment, Management of Allied Act, VAS. Benefits equivalent to FTZs (Free Trade Zone) operating globally. It encourages foreign trade and warehousing activities for overseas and Indian entities provides an integrated platform for sourcing & distribution management, including trading (in and out of India), thus reducing operational costs, especially without own setup.

FTWZ is near international gateways for direct deliveries from port/ airport reducing cargo holding time. One can move the shipment from international gateways to FTWZ without Customs assessment. Operates on a freely convertible currency model, i.e. payment for services in FOREX Provides taxation benefits such as Exemption on Customs/ countervailing /Excise Duty, Interest on Duty and Licensing & Compliance of Allied Acts (whilst goods are within FTWZ).

FREE TRADE AND WAREHOUSING ZONE UNDER SEZ ACT 2005 AND RULES 2006

"Free Trade and Warehousing Zone" means a Special Economic Zone wherein mainly trading and warehousing and other activities related thereto are carried on; (Refer Section 2(n) of SEZ Act 2005)

Free Trade and Warehousing Zone Unit under "A Special Economic Zone" shall be deemed to be a territory outside the customs territory of India to undertake the authorized operations. (Refer per Section 53 of SEZ Act 2005)

A Special Economic Zone shall, with effect from such date as Central Government may notify, be deemed to be a port, inland container depot, land station and land customs stations, as the case may be, under section 7 of the Customs Act, 1962.

FOREIGN (SUPPLIER/BUYERS) & INDIA (SUPPLIERS/BUYERS) CAN WAREHOUSE AND TRADE THEIR GOODS THROUGH FTWZ

FTWZ Units can hold goods on behalf of Foreign Supplier & Buyer and Indian Supplier & Buyer as well. Refer rule 18(5) of SEZ Rules, 2006 (AS PER SPECIAL ECONOMIC ZONE INSTRUCTION NO.60 DT: 1st July 2010)

Features & Benefits of FTWZ

  • Movement of goods from customs gateway based on trans-shipment procedure without assessment by customs, in turn, decreasing Customs process lead time.
  • An overseas company can register with us and distribute it all over India.
  • Modification of existing power distribution Scheme.
  • Dedicated customs setup is available within the FTWZ 24x7x365. .
  • 100% owned and operated facility with the limited intervention of Govt. authority inside the warehouse.
  • Period of storage of goods - 5 years.
  • No interest to be paid on duty.
  • Value-added operations permitted within the FTWZ.

Features of Free Trade Warehousing Zone for Importer

  • Defer payment of customs duties & taxes till the removal of goods from FTWZ even up to five years
  • Faster /express clearance from port/ Airport (direct out from gateway port to FTWZ).
  • 'On wheel clearance' with 24hrs after container out from Port and clearance from FTWZ after duty payment within 2 to 3 hrs (after seal verification/Custom inspection).
  • PLA facility (custom duty deposit with custom) for quick custom duty payment or immediate duty payment for custom clearance from FTWZ custom.
  • Custom officers (AO/EO/PO) are stationed at FTWZ for faster clearance.
  • Work on NSDL online filling which much faster than ICEgate online filling

Financial Benefits of FTWZ

  • Ease of starting EXIM business in Indian FTWZ by foreign entities
  • Income tax – Exemption on re-export of imported goods
  • Flexibility of transactions in any free convertible currency
  • Deferment of Custom duties / GST for Longer periods
  • Exemption from Stamp Duty which is chargeable on imported cargo
  • Retain 100% Foreign Exchange receipts in Foreign Currency account
  • Facility for undertaking Value added services
  • In house Customs Clearance and Bank facility for temporary removal / Sale within FTWZ
  • Freedom from Demurrage, Detention & Interest cost

KEY HIGHLIGHTS ON V-Unit Logistics FREE TRADE WAREHOUSING ZONE

  • Foreign entities are allowed to operate in the Free Trade Warehousing Zone
  • Dedicated customs compliance setup available
  • Period of storage of goods without duty payment for five years subject to country regulations.
  • Payment of duty and compliance to allied activities only when the goods move out of Free Trade Warehousing Zone into Domestic Tariff Area (DTA)
  • Duty deferment for the goods stored in Free Trade Warehousing Zone
  • Value-added operations permitted within our Free Trade Warehousing Zone
  • Ease of re-exports and re-import. No duty is involved for the Import/re-export of goods from Our service
  • Multi-user facility with experienced shared resources resulting in zero CAPEX for customers
  • Possibility of using this facility as a regional hub. Permits operations of the Vendor Managed Inventory.
  • Elimination of customs activities of bonded warehouses
  • Movement of goods from customs gateway port basis a trans-shipment procedure without examination by customs, in turn decreasing customs process lead time
  • Duty can be paid online through the E-payment portal online
  • If rework/repair required for goods in Free Trade Warehousing Zone, on temporary removal basis, goods can be taken out of Free Trade Warehousing Zone without duty payment

FTWZ Locations

JMFTWZ

Mannur - Sriperumbudur

AMRL

Nanguneri - Tuticorin

NDR

Nandiambakkam - Ponneri