CHENNAI FREE TRADE ZONE CONCEPT
Free Trade and Warehousing Zone is a category of , Special Economic Zone, governed by the SEZ Act 2005 issued by the Government of India. Free Trade and Warehousing Zones (FTWZ) is designated as a deemed foreign territory which has been created to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency.
Operating within a free trade zone has numerous advantages. It facilitates modern concepts such as just in time delivery and anticipatory shipping in an economically viable and tax friendly method. Furthermore, the presence of custom officers on site enable quick clearance of goods and hence minimise the turnaround time. The SEZ policies further provides additional benefits such as
- Goods can be stored for a period of 2 years without payment of Import Tariffs
- Goods entering the zone from DTA are deemed as export and are eligible for duty drawback
- Units in the FTWZ can hold goods on account of Overseas suppliers, Overseas buyers, Domestic Buyers and Domestic Suppliers
- Imported goods can be re-exported at any time without having to pay duty
- All transactions are done in Free Foreign exchange
- Quality control and inspection capability prior to duty payment.
- Packing or re-packing without processing and labelling as per customer or marketing requirements can be undertaken within the FTWZ
- Foreign buyers can use the FTWZ Units for inspection of goods and consolidation of cargo from multiple vendors within India and overseas suppliers
- Value added services on behalf of foreign buyers prior to Exports is permissible.
- Availability of 100% FDI to set up operations