Free Trade Warehousing Zone ( FTWZ )
September 21, 2024
FTWZ : The key objectives of FTWZ in India includes: Promoting and facilitating global trade. Simplifying customs procedures and reducing transaction cost.
- Free Trade Warehousing Zone is deemed foreign territory within geography of India. It is considered outside of Domestic Tariff Area.
- Goods can be stored in FTWZ without payment of Customs Duties & also on behalf of foreign supplier.
- Maximum period for storage in FTWZ is five years.
- All transaction in FTWZ should be in convertible foreign currency.
- Re-packing, relabelling is allowed. Also Re-export is allowed.
- In an FTWZ, the authorised operations comprise of trading, warehousing, packing, labelling, lashing, shrink wrapping, strapping, palletization, bottling, clubbing, consolidation, quality checking, testing, kitting, combination packing etc. as may be authorised by the Unit Approval Committee in Letter of Approval.
Benefits in FTWZ : There are various benefits for importers exporters in FTWZ.
- Fund is not blocked during importation.
- Duty is payable if goods are transferred to DTA unit.
- Flexibility towards storage and distribution in India.
- Goods can be re-exported hassle-free to any country with repacking and relabeling.
- Assembling of SKD items are allowed.
- Kitting and bolting are allowed in FTWZ area.
- Transfer of goods from one Unit to other Unit within FTWZ is allowed.
- Products from India entering the FTWZ are treated as deemed export providing immediate benefits to suppliers.
- No GST to Unit holder for value added services in FTWZ areas such as packing relabeling, labour services etc.
- Temporary Removal from FTWZ is permitted for Exhibition and for Demonstration purpose up-to 120 days.
