In India, a Free Trade and Warehousing Zones (FTWZ) is a duty-free place and is deemed to be a foreign enclave for the purposes of trade operations. FTWZ are a special kind of SEZs to create trade related infrastructure to bridge the gap in the existing facilities available for trading and storage activities for foreign trade with freedom to carry out trade in free currency. In FTWZ goods may be landed, handled, manufactured or reconfigured, and re-exported without the intervention of the customs authorities. Only when the goods are moved to consumers within the country, it become subject to the prevailing customs duties.
Value Creation Park will be developed as international trading hubs, serving as key links in global logistics and supply chains servicing the globe. We will help to mitigate customer’s logistics & supply chain challenges unique to India.
100% Foreign Direct Investment is permitted under the automatic route, which means, without any specific prior approval either by the Government or the RBI, for setting up of Special Economic Zone/FTWZ.
- 24 / 7 Customs clearance enhancing speed and efficiency of India distribution.
- Quality control capability prior to duty-payment (will allow companies to have quality control on products before the duty payment).
- Re-Export without regulatory/duty implications. (in case of rejection or damage of imported products).
- Goods can be kept here duty free for 5 years.
- Increase sales by showing/demonstrating their products to Indian buyers.
- Minimize time to market.
- Can adopt JIT model.
- All transactions in foreign currency.
- Indian Custom Duty will be paid only when sale to Indian Buyer.
- Exemption from 4% SAD customs duty.
- No port detention Charges.
- No service tax for services availed in FTWZ.
- Exemption from VAT, Central Sales Tax and Excise Duty.
- Cross Border renting/leasing.
- Facility for re-export and re-invoicing.
- Foreign Suppliers need not have an office in India while retaining full ownership of the goods kept in the FTWZ.
- Goods delivered to Indian Buyer duty paid.
- Strong IT backbone and WMS system for real time Inventory monitoring and business analytics.
- E-Commerce advantage.