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Why Settle for Bonded Warehousing When FTWZ Unlocks Better Cash Flow and Flexibility

Free Trade Warehousing Zones (FTWZ) are India’s highest-tier duty-deferred storage facility — legally superior to standard bonded warehouses under the SEZ Act. OSV FTWZ operates licensed FTWZ infrastructure across Delhi NCR, Mumbai, Chennai, Mundra & Hyderabad. Same duty deferment. Better compliance. More flexibility.

FTWZ,

Why Importers Switch from Bonded Warehouses to FTWZ

If you’re looking for a bonded warehouse in India, you’re solving for the right problem — deferred customs duty, flexible clearance, and working capital protection. An FTWZ solves all of that, and goes further.

A standard Custom Bonded Warehouse operates under the Customs Act. An FTWZ operates under the SEZ Act — making it a notional foreign territory under Indian law. That single difference unlocks a set of advantages that no bonded warehouse can legally offer:

What is a Free Trade Warehousing Zone — and How Does It Work?

A Free Trade Warehousing Zone (FTWZ) is a government-licensed, SEZ-designated facility where imported goods can be stored without payment of customs duty or GST until the goods are cleared for sale in the Indian market (DTA) or re-exported. Unlike a standard bonded warehouse, an FTWZ is treated as a notional foreign territory — meaning your goods are legally considered to be outside India's customs frontier while stored at OSV. You pay duty only on the quantity you actually move into India, when you choose to move it.

Step 1: Import & Into-Bond Filing

Goods arrive at port. OSV's customs team files the Into-Bond bill of entry. Your cargo enters our FTWZ facility duty-free and GST-free.

Step 2: Secure Storage Under Customs Supervision

Goods are stored in OSV's licensed FTWZ facility. Our WMS tracks inventory at SKU level in real time. You have full visibility via our client portal.

Step 3: Ex-Bond Clearance on Your Terms

When you're ready to sell into India, OSV processes the ex-bond bill of entry. Duty is assessed and paid only on the quantity being released — not your full shipment.

Step 4: Re-Export or Value Addition

Unsold goods can be re-exported with no duty liability. Repacking, relabeling, kitting, and assembly can be executed within the zone before domestic clearance — reducing costs and improving market-readiness.

Chemicals
OSV facilitates expert compliance solutions with duty deferment, keeping in mind its sensitive nature. We ensure secure, efficient, and temperature-controlled management of chemicals, with a unique tracking system that monitors the goods to reduce errors and make the process more seamless. Additionally, we provide comprehensive services, like relabelling, Quality checking, etc.
Liquor
Our temperature-controlled warehousing solutions are designed to preserve the integrity of liquor products, including premium spirits, by maintaining optimal storage conditions. With duty-free warehousing, businesses can strategically time their sales, taking advantage of cost savings and improving profitability. We also offer value-added services like relabeling and re-export options, making our facilities ideal for liquor importers and distributors looking for flexible, cost-efficient storage and distribution solutions for both local and international markets.
Pharmaceuticals
OSV offers GMP-compliant storage zones specifically designed for bulk drugs, APIs (Active Pharmaceutical Ingredients), and pharmaceutical formulations. Our cold chain infrastructure and dust-free storage areas are built to meet the stringent requirements of the pharmaceutical industry. Additionally, we provide zero-duty warehousing until clearance, which optimizes cash flow and helps improve the efficiency of working capital for pharmaceutical businesses. With these specialized solutions, businesses can ensure product safety, regulatory compliance, and operational efficiency.
Auto Parts
Our warehousing solutions for auto parts are designed to optimize storage and order fulfillment for CKD (Completely Knocked Down) and SKD (Semi Knocked Down) kits, as well as spare parts. With just-in-time fulfillment and batch-wise tracking, we ensure efficient handling and distribution. By leveraging duty deferral and optimized space usage, businesses can reduce landed costs, making OSV an ideal partner for auto parts importers and distributors looking for cost-effective storage and distribution solutions.
Machinery
OSV provides heavy cargo handling and storage solutions for machinery and industrial equipment, including high-load racking for efficient storage. We also offer custom crating, component-level tracking, and service-part logistics, making it easier for businesses to manage their machinery inventories. Our facilities are ideal for businesses that need to store machinery until project execution or for re-export, providing safe and efficient storage solutions for large equipment and components.
Cosmetics
OSV’s warehousing facilities for cosmetics are designed to maintain hygiene and ensure temperature stability. We offer a range of value-added services, including relabeling, repacking, and kit assembly, making it easy for businesses to customize their products for different markets. Our solutions are perfect for businesses looking to distribute cosmetics across multiple regions or re-export products globally, all while ensuring regulatory compliance and product quality.
Electronics
OSV’s anti-static, climate-controlled zones are specifically designed for electronic products, ensuring the safe storage of high-value items like phones, laptops, and other electronics. Our barcode-based inventory management system ensures precise tracking and security for valuable goods. With specialized storage conditions, we cater to B2B exports and offer pre-market testing capabilities for electronic products, making our facilities an excellent choice for tech companies and distributors
Polymer
Our warehousing solutions are tailored to the polymer industry, providing bulk storage for granules, resin drums, and other polymer-based products. With efficient space utilization and just-in-time dispatch models, OSV supports manufacturing units that require reliable and timely supply chains. This service is ideal for importers who cater to the plastic, packaging, and textile industries, offering them the flexibility they need for effective inventory management and order fulfillment.
Medical Devices
For medical devices, OSV offers regulatory-compliant storage facilities, catering to implants, surgical tools, diagnostics, and other medical equipment. Our real-time tracking system ensures that products are managed with FIFO (First In, First Out) and FEFO (First Expired, First Out) logic, ensuring product integrity and compliance. Our cross-border re-export capabilities, combined with zero-duty warehousing, make us an ideal partner for businesses that need flexible and cost-effective storage and distribution solutions for medical devices.
Luxury Items
OSV offers high-security bonded storage with 24/7 surveillance, ensuring that premium items are stored with the utmost care and protection. Deferred duty options help improve cash flow flexibility, providing businesses with the financial flexibility to manage their inventories. Additionally, our white-glove logistics services and SKU-wise inventory control ensure that each item is handled with care, making our facilities ideal for luxury goods storage. whether for holding or re-export.

With its strategically beneficial warehouses Pan-India, OSV FTWZ ensures to provide end-to-end services with tech-driven advanced solutions to simplify and streamline your supply chain. Here are the benefits our state-of-the-art facilities offer.

Delhi NCR

🏭 Warehouse Area: 29052  sq. ft. of strategically located FTWZ storage for high-value inventory

🚛 Multimodal Connectivity: Seamless road and rail access to North India’s major industrial and consumption markets

❄️📦 Key Advantages: Deferred duty benefits for electronics, pharmaceuticals, and premium goods, faster regional distribution, controlled environments, and secure inventory management

Chennai

🏭 Warehouse Area: sq. ft. of advanced FTWZ warehousing supporting manufacturing-led supply chains

🚢 Port Connectivity: Direct access to Chennai Port, a key gateway for automotive, electronics, and engineering cargo

❄️📦 Key Advantages: Ideal for automotive and industrial imports, temperature-controlled storage, efficient customs processing, re-export enablement, and 24/7 security

Mumbai

🏭 Warehouse Area: 7,339,860 sq. ft. of FTWZ-compliant, large-format storage infrastructure

🚢 Port Connectivity: Immediate access to Nhava Sheva (JNPT), India’s largest container port, with strong road and rail connectivity

❄️📦 Key Advantages: High-speed customs clearance, ideal for high-volume imports and re-exports, temperature-controlled zones, sensitive cargo handling, and 24/7 secured operations

Mundra

🏭 Warehouse Area: 1,089,000 sq. ft. of expansive FTWZ warehousing designed for bulk and long-term storage

🚢 Port Connectivity: Close proximity to Mundra Port, India’s largest commercial port with deep-draft vessel capability

❄️📦 Key Advantages: Cost-efficient duty-deferred storage, optimal for bulk, project, and heavy cargo, simplified compliance, re-export flexibility, and round-the-clock security

Hyderabad

🏭 Warehouse Area: 35000 sq. ft. of world-class FTWZ warehousing built for high-value, regulated, and long-term inventory storage

✈️🚛 Connectivity Advantage: Strategically located near Rajiv Gandhi International Airport with seamless access to Hyderabad’s pharma, aerospace, and electronics hubs, enabling faster last-mile distribution across South India

❄️📦 Key Advantages: First and only dedicated FTWZ operator in Hyderabad – Ideal for high-value and sensitive cargo with temperature-controlled solutions, duty-deferred storage for better cash flow, streamlined compliance for regulated industries, re-export flexibility, and 24/7 secure operations tailored for precision handling

Why Choose US

OSV FTWZ isn’t just infrastructure—it’s decades of operational intelligence applied to modern global trade. Backed by 15+ years of FTWZ expertise and a 50+ year legacy in logistics and warehousing, we combine regulatory mastery, advanced systems, and a problem-solving mindset to deliver supply chains that simply work.

Specialized Storage Ready

Temperature-controlled and sector-specific infrastructure for precise handling across industries.

Project Cargo Expertise

End-to-end handling of oversized, heavy-lift, and complex cargo, executed with planning, permits, and precision.

Smart Redistribution Hub

Seamless redistribution to SEZs, EOUs, and international markets with minimal duty exposure.

India's Only 5-Corridor FTWZ Network Detail

Delhi NCR, Mumbai, Chennai, Gujarat, and Hyderabad — under one operator, one agreement, and one compliance team. No fragmentation, no vendor juggling.

Zero-Compromise Security

With a zero pilferage track record and operations validated through multiple quality and compliance audits, OSV FTWZ is built for high-value, high-sensitivity cargo.

Global Trade Without Local Setup

Foreign companies can store, trade, and distribute in India without establishing a local entity.

Faster Market Entry

Support market testing, product demonstrations, and phased rollouts before full-scale distribution.

Customer-First Operations

Every process is designed around your business priorities, with teams that adapt quickly and act decisively to keep cargo moving.

Duty & Cash-Flow Optimized

Duty-deferred, interest-free storage up to 5 years, allowing duty payment only when goods are released.

Value-Added, Cost-Efficient

Repacking, relabeling, consolidation, and kitting within FTWZ to optimize time and logistics costs.

Always-On Expert Support

24/7 operations and customs-aligned teams acting as an extension of your supply chain.

OSV FTWZ facilities operate under India’s highest compliance standards, with certifications independently audited and renewed annually. Our clients trust us not just for our infrastructure, but for our regulatory track record.

Client Experiences Across Global Trade!

Vinod Kumar

Country Head

Ashish Kundani

Director

Frequently Asked Questions

A: The underlying need is the same — duty-deferred storage with the ability to clear goods in batches. An FTWZ satisfies that need and adds legal advantages that a standard bonded warehouse cannot offer: GST-exempt services, direct re-export without duty complications, Value Added Services within the zone, and access for foreign companies without a local Indian entity. OSV operates FTWZ facilities, not standard bonded warehouses — so if you engage us, it’s important to understand you’re entering a higher-benefit structure, not a basic CWC bonded facility.

A: Up to 5 years from the date of import, with no interest charged on deferred duty during the storage period.

A: No. Services consumed within an FTWZ are exempt from GST since the zone is treated as a foreign territory. This is a direct cost advantage over standard bonded warehouses.

A: Yes. Foreign companies can import, store, trade, and re-export from OSV’s FTWZ facilities without establishing an Indian subsidiary.

A: Goods can be re-exported from an FTWZ without payment of any customs duty. OSV’s customs team handles all re-export documentation and compliance.

A: Chemicals, pharmaceuticals, electronics, auto parts, machinery, luxury goods, liquor, medical devices, cosmetics, polymers, FMCG, and more. Temperature-controlled and high-security zones available for regulated and sensitive cargo.

Talk to India's Leading FTWZ Operator — Free Consultation, No Commitment.

If you’ve been looking at bonded warehouse options in India, you should be evaluating FTWZ. OSV’s team will assess your cargo category, recommend the right location, and walk you through exactly how FTWZ compares to what you’re currently using or considering — at zero cost.

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