BlogFree Trade Warehousing Zone
As a strong emerging trade market, India offers international companies numerous business opportunities. Foreign companies wanting to foray into the procurement and sales market should know the pros and cons of the Indian economic system and also have good knowledge of the local markets to be able to save costs and avoid customs regulations.
Learning About Industrial Regional Clusters
The local industrial clusters have borne many producers and suppliers who have established their businesses in specific regions. For instance, machine parts and automobiles are produced in Haryana, whereas all textiles, fabrics, and sports goods come from Punjab, while leather goods and jewelry are manufactured in Uttar Pradesh.
The dynamism of the Indian market is spread across the nation in small regional clusters, thus establishing itself as a dependable procurement market ready for foreign supply chains. A framework of a performance-oriented industry is presented by every local state government, which is self-sufficient in its own way. Moreover, the introduction of free trade warehousing zones has further accelerated the growth of the procurement and sales market in India.
India- A Competitive Environment Filled With Lucrative Benefits
The foreign companies view India’s regional industrial clusters as a golden opportunity to establish trade relations. The strategic locations of industries, namely; automotive, chemicals, pharmaceuticals, and engineering have boosted local economic productivity. These clustered manufacturing locations offer accessibility and powerful infrastructure that have proximity to valued resources such as free trade warehousing zones and a greater concentration of skilled manpower. This helps the overall production of goods that are technically demanding for the domestic as well as international markets. The local value chain is the main connecting link to the global sales market.
Companies that wish to establish durable business relationships in prime economic zones and indulge in exporting goods for local manufacturing investments can be free of imposing trade laws and compliance by adopting to route their exports through free trade warehousing zone channels.
India’s Production Locations & Proximity to SEZ
Special economic zones or SEZs offer customs deference and tax relief. A huge proportion of the nation’s industrial sectors are situated within the SEZs. These free trade zones are not limited by geographical borders, and they do not fall under the Indian customs and laws territories. FTZs provide financial relief to foreign businesses so that they can set up trade relations and enhance their business operations in India.
Through free trade warehousing zones, foreign as well as Indian companies are allowed to manufacture and offer their services to local consumers and also benefit from customs duties and regulations. All pre-products from out of the country can be brought into these free trade zones in a duty-free and tax-free way. These goods are given exemption from various income taxes usually levied on export goods. After gaining free storage rights, the sale of these products to the local market is made possible only after payment of customs duties. Companies can look up and find more than 300 authorized special economic zones and free trade zones within the country.
Indian Market Procurement
Free trade warehousing zones are designed to propagate international trade between countries. Businesses gain financial advantages within the FTZs, as stated by the Indian law as they are direct sub-forms of the special economic zones. The advent of free trade zones in areas near the primary seaports and airports facilitates and streamlines international trade opportunities. For business within the country and foreign companies, once they enter into these trade zones, registration is not needed and trade transactions are allowed to be conducted with foreign currencies. They are given faster customs clearances and deferral of customs duties for all imported goods. All storage, packaging of goods, labeling, etc is fully permitted in the free trade zones.
Domestic Tariff Areas
Some companies may focus on the Indian domestic market and locate themselves in domestic tariff areas or DTA within the special industrial zones that form a part of DTA. Such DTA units are permitted to do export activities and exploit foreign trade policies. Profits and sales from such domestic tariff areas and those from special economic zones are termed as deemed exports.
The Digital Procedures for Indian Customs Department
Indian government policies have evolved and using new technologies or digitalization to improve its customs operations is the new norm. You can take the example of ICEGATE, the country’s customs platform that offers e-filing services through the online medium to all retailers, traders, and carriers. For this purpose, a singular window interface has been set up to allow seamless contact with the related authorities who are responsible for the import and export of goods.
The National Single Window System
The NSWS or the National Single Window System that was formed in 2021 with the idea to accelerate and boost international business relations via shortcuts. That means all lengthy or prolonged bureaucratic procedures are effectively centralized through the NSWS platform. Previous lengthy or unnecessary official procedures and rules were cut short to allow new methods for obtaining quick registrations and licenses to start a business that can be applied remotely. This is a major plus point for all businesses, startups, and investors.
Onnsynex Ventures Pvt. Ltd.
Even though the digital platform has facilitated and simplified trading with easy market entry and import/export rules, the local market service providers are quite indispensable. With strategic planning and partnerships with foreign companies, entering the Indian market conducting cross-border logistics, and looking after customs formalities are all possible by leading international logistics service providers such as Onnsynex Ventures Pvt. Ltd and their free trade warehousing zones scattered across many Indian states. The company OSV offers comprehensive expertise, rich experience in dealing with international trading, and in-depth local market know-how.
Pioneers in logistics performance, OSV FTWZ provides several free trade zones and customs stations for international goods to be cleared quickly with customs benefits. They have warehousing zones in Chennai, Mumbai, and Delhi NCR region to name a few.
