Are you an importer or exporter of goods to or from India? Do you find your business costly enough mainly due to the additional fees, customs duties, and taxes that you have to pay every time a new consignment arrives or leaves your business unit? Well, if you don’t already know this, let me tell you that you can save on all these fees and costs by simply choosing the free trade port in India. There are many incredible benefits of using a free trade zone for businesses but before I tell you about those benefits, it makes sense to understand “what does a free trade zone mean?”
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.
It is considered as a foreign territory – a uniquely designed infrastructure meant for import-export of goods without hassle. The goods can be stored, assembled, repackaged, reassembled, and re-exported within these zones without upfront paying customs duties. The duty is levied on the part of the consignment that moves out of the FTZ for domestic tariff area (DTA) sale.
A free/foreign trade zone enables storage of a wide range of products including FMCG, Pharmaceuticals, Medical Devices, Cosmetics, Chemicals, Technology Equipment, handling amenities, etc. The FTZs are used for storing goods and for carrying out several value-added (permitted) activities as per the laws of the land where they are located.
The FTZs also offer state-of-the-art infrastructure along with the advanced WMS and much more than any merchant can look forward to when it comes to securely storing high-ticket items and goods that are delicate, temperature-sensitive, and need hygienic and temperature-controlled storage spaces.
Benefits of Using a Free Trade Port In India
The free trade zones and free trade ports are strategically located around international airports, dry ports, and seaport areas for providing easy connectivity by road and rail. The FTZs promote hassle-free import, export, and re-export with duty, tax, and compliance benefits.
Some of the key benefits of using a free trade zone for your business include:
- Duty Deferment
- Tax-free Storage
- Streamlined logistics
- Power of doing business without any permanent establishment
- Getting Rid of Detention and Demurrage Permanently
- Improved control over the inventory
- Enhanced security that enables better CBP compliance
- Reduced cost of transportation and insurance
- And much more…