FTWZ
Free trade warehousing zones are considered game changers and can elevate your trading experiences to a new level. Trading with India has never been so simple and cost-effective, thanks to these free trade ports or zones across cities like Mumbai, Chennai, Delhi NCR, and Gujarat.
OSV FTWZs in India are known to benefit scores of industries, which include automotive, textile, manufacturing, pharmaceuticals, luxury goods, electronics, consumer goods, and more. There is not one industry that is left untouched by the influence of FTWZ for aiding their successful endeavors in various trading businesses.
FTWZ in India Explained
Free trade warehousing zones fall under the Special Economic Zone category and provide useful services that include quick cargo delivery, taxation-related advantages, and total customs clearance solutions. Other beneficiary qualities involve finding integrated fixes for functions that include packing, sorting, inspection, re-invoicing, kitting, strapping, and assembling complete or semi-knocked-down kits. FTWZ India is a part of SEZ that focuses on offering trading and warehousing solutions.
The remarkable success of FTWZs in other nations such as UAE, Singapore, and the Netherlands has inspired the growth of free trade logistics hubs all over the world. All these major trading ports offer massive land areas and trading opportunities for innumerable foreign companies at low-cost rates. Besides, hundreds of employment pathways are created to boost the local economy of the land.
The Introduction of Free Trade Warehousing Zone in India, Salient Points:
- In the Indian subcontinent, the FTWZ was presented via the Exim policy to facilitate the import/export trade of goods and services.
- Each free trade zone needed to consider an investment of Rs. 100 crores
- Every zone had to plan its operation with land comprising five lakh sq. ft. built-up area
- The FTWZ policy is a part of the Foreign Trade Policy under the SEZ ACT 2005
- For FTWZ development across India, the government has sanctioned 100 percent Foreign Direct Investment
FTWZs India – The International Trading Hub
FTWZ is a palatable zone labeled as a special SEZ zone to carry on businesses. They are essential trading hubs that also provide outstanding amenities and infrastructure. Companies are provided with state-of-the-art warehousing for different product ranges, superior transportation equipment and commercial office setups. In addition, merchants and traders operating in free trade zones can avail of utilities such as telecom, water, and electricity. Lastly, FTWZs in India exert their supremacy by allowing speedy clearance for the import/export of goods.
FTWZs Goals
The primary objective of free trade warehousing zones is to design trade-related advanced infrastructure to allow easy access to import/export trade of goods and services to and from India. Traders have the freedom to perform trade transactions in any form of currency. FTWZ is the connecting link between logistics and international supply chains, servicing Indian businesses as well as foreign multinational companies.
International and domestic businesses can gain access to all important facilities like quality infrastructure, the latest equipment, transportation, commercial offices, communications, strong connectivity, and other handling-related activities. Free trade zones are meticulously planned to be built around prominent seaports, airports, or dry ports. FTWZs play a crucial role in facilitating EXIM trade and getting rid of related incompetence associated with EXIM trade in India.
FTWZ caters to a wide range of industries, businesses, and trade sectors.
Let us explore the industries that stand to gain maximum benefits by operating through FTWZs in India:
- Manufacturing – Manufacturers using free trade zones function by storing both raw materials and finished goods in warehouses. They can upgrade their supply chain procedures and improve their production operations.
- Retail & Ecommerce – FTWZ helps reduce inventory expenses and improves order fulfillment processes for retailers and ecommerce stores.
- Automotive Industry – The automotive industry relies heavily on warehouses for the storage and distribution of their materials and spare parts. FTWZs helps reduce lead times and also works towards improving customer-centric services.
- Electronic Industry – The electronics industry uses FTWZ to operate its international supply chains effectively and also to manage market demand swiftly without too much time lapse.
- Pharmaceutical Industry – An FTZ is positioned in an advantageous position and has a clear competitive edge over others in the global market. In the pharma industry, an FTWZs helps reduce costs, facilitate speedy delivery of goods, and proper management of regulatory compliance. The pharmaceutical companies are bound by strict supply chain requirements and complex manufacturing procedures. Businesses dealing in high-volume orders are hugely benefited by FTWZs services across India.
- Chemical industry – Free trade warehousing zones have become an integral part of the foreign or global supply chain operation for the chemical industry. These free zones offer lucrative solutions for chemical storage and transportation. For successful operations, one has to navigate through the complexities of free trade warehousing strategies and chemical logistic rules to conduct business in India.
- Luxury Goods Industry – Those involved in the high-end luxury goods industry can consider free trade zones as a profitable option. From various price benefits to duty-free storage of luxury products, companies are relieved and happy to conduct business via FTWZ in India.
Sum Advantages of FTWZs Services In India
Free trade warehousing zones offer vast benefits to all types of industries. For imports to India, FTWZ can help in offering flexibility aiding end distribution operations in India. It can free up working capital and boost sales. Another advantage is being able to perform quality control checks before payment of customs duty. FTWZ operations include exemption from paying duty fees on excise, VAT, and CST. Similarly, businesses can avail of service tax exemptions for all kinds of services, which include freight and transportation.
For export businesses from India, the products entering FTWZs facilities are considered deemed export products, which offers immense benefits to suppliers. Associated Indian companies can consider their exports to be counted as their export quotas. Apart from that, FTWZ units offer single-window duty clearance and certification for both central and state-level validation.
From eliminating trade hurdles to facilitating seamless imports, exports, and re-exports, OSVFTWZ is key to resolving all your logistics challenges. Commissioning foreign trade to the Indian shores was never so easy and trouble-free!