Free Trade Zone ServicesFree Zone CompanyFree Zone Company in IndiaFTWZ
A free trade warehousing zone (FTWZ) is an area within special economic zones of the country that is specially designated for landing, handling, stacking, labeling, packaging, reconfiguring, and re-exporting goods without having to pay customs duties and other taxes that otherwise are applicable when importing goods to a country. It is also referred to as a duty-free zone or a foreign trade warehousing zone. The taxes and customs duties come into effect only when the products are moved out of the FTWZ to be sold in the marketplace inside the country that too on desired quantities.
The FTWZ in India is a special category of SEZs (Special Economic Zones) that offer various warehousing services including packing management, inspection, sorting, strapping, kitting, re-invoicing, etc., and offer taxation, duty, and compliance benefits to companies. It essentially focuses on boosting inter-border trade relations.
Our India FTWZs (Free Trade Warehousing Zones) have been a great success acknowledged by countries such as USA, China, Japan, Switzerland, Singapore, and Dubai to name a few. The FTWZ warehouses in India located in prominent tier 1 cities named Delhi NCR, Chennai, Mumbai, and Gujarat are extraordinarily spacious, well maintained, and truly world-class. Our free trade warehousing zones have been operating to facilitate the import-export of goods/services for our valued clients.
Free trade warehousing zones offer several benefits to businesses some of which are discussed here for your quick reference:
1. Duty Deferment: This is the most attractive benefit of using an FTWZ for importing or exporting to India. When you stock your commodity inside the Free Trade Warehousing Zone, you defer the duty that is otherwise being levied on the general import procedure. The upfront duty that is deferred is a saving for your business on which you can either earn opportunity cost or utilize it in your working capital.
Whether it’s about pharma import in India, auto parts export to India, or cosmetics export to India, you can simply defer customs duties on imports as long as they are stored inside the free trade warehousing zone. The duty is only charged when the stock moves out for DTA (Domestic Tariff Area) sales otherwise no applicable duty is charged on your permissible cargo.
2. Long Tenure of Storage: While you can store your commodity for a period of a year in other warehousing models but in the case of free trade warehousing, you can stock your cargo for a period of 3 years extendable up to 5 years duty-free. Re-exporting your cargo from ftwz is also duty and free.
3. Rapid Customs Clearance: Customs clearance is the act of taking goods through the customs authority to facilitate the movement of cargo into a country (import) and outside the country (export). It is something that cannot be deferred and is an inevitable part of foreign trade.
While in the case of other warehousing models where 3 to 4 days are needed in order to clear the stock, In the case of FTWZ it reduces to 24 to 48hrs moreover 12 hrs in some cases. This is an advantage that you get when you are working in Deemed to be foreign territory.
4. Lessen your License Burden: No Drug Licenses/BIS/FSSAI/approvals/ certifications required for importing goods in FTZ. Yes, you heard it right!!
None of these certifications or licenses are required inside FTWZ or re-exporting, those would only be required once the goods are taken out for DTA (Domestic Tariff Area) Sales.
5. Do Business without any Permanent Establishment: It is generally seen that companies need to have a permanent establishment in the country in which they want to do business for which they not only need capital but also sync their business to the nation’s compliance.
Thanks to free trade warehousing zones, now you can start a business in any country without actually having any entity over there. FTWZ serves as a custodian of your entity over that geography.
6. Just in Time Delivery: By utilizing FTWZ, many of our clients have efficiently adopted JIT Inventory System, a management strategy that aligns raw-material orders from suppliers directly with production schedules.
The free Trade Warehousing Zone model aptly utilizes the JIT Model thus making your supply chain more efficient, responsive, competitive to domestic suppliers, and disrupting proof from market volatility.
7. Value-Added Services: Value Addition is something that can be done easily in Free Trade Warehousing Zones.
Repackaging, Kitting, Re-labelling, Assembling, Lashing, Shrink Wrapping, Strapping, Palletization, Bottling, Clubbing, Quality Checking, Testing, Combination Packing, and Handling are a few of the activities that can be done inside an FTWZ.
Except for changing ingredients, changing the country of origin, manufacturing, manufacturing Date, and Expiry Date, you can probably do anything inside a free trade warehousing zones.
To take it forward mentioned below are the OSV Add-On Advantages:
1. State of the Art of Infrastructure: With German manufactured VNA Machinery, Magnetic Flooring systems, and advanced warehousing management, OSV FTZ gives you an insight into international warehousing infrastructure in India.
We take pride in the fact that OSV is the choicest logistics and warehousing solutions provider for countless businesses looking for world-class FTWZs in India respected by companies from the USA, Dubai, Japan, Turkey, and China.
2. Temperature Controlled and Cold Storage: For perishable and temperature commodities like fruits, dry fruits, rubber, cosmetics, pharmaceuticals, chemicals, etc. OSV has the capability to offer Temperature controlled and Cold storage chambers with dust-free environments ranging from -30ºC to +26ºC as per the requirements of its clients.
3. Knowledge Center: Backed by a cadre of Industrial Experts, EX-IAS, EX-IRS, IRS Officers, and Industry Veterans, OSV is a full-fledged knowledge center itself. We think that there is not any complex supply chain problem that we cannot solve.
Accompanying with us not only optimizes your business’s supply chain but you as a whole. For our esteemed clients, we provide a free consultation with Tax/Customs/Regulatory experts on a recurring/need basis.
4. 24*7 CRM Support: Serving clients without any delay is the key to success for any business and we strongly believe that. With our teams of CRM Experts, we ensure that each of our clients is provided with dedicated CRM Support round the clock.
We don’t allow geographical boundaries or time zones to come in between the provision of support and that is how we are known as the pioneers in the market.
5. Advanced Warehousing Management System: A warehouse management system (WMS) is a software solution that offers visibility into a business’s entire inventory and manages supply chain fulfillment operations from the distribution center to the store shelf.
It enables us to maximize space utilization thus coordinating and optimizing resource usage and material flows. Specifically, WMS systems are designed to support the needs of an entire global supply chain, including businesses in which distribution, trading, merchant trading, and contract manufacturing are done on a frequent basis.
That is the reason we call ourselves your one-stop supply chain partner and we mean it when we say it.
For more information about FTZs, supply chain consultants in India, and logistics & warehousing solutions we offer, please feel free to call us or drop your query via email at support@onnsynex.com.