A free trade zone, owned and defined by the government of India allows a manufacturer to import, export or re-export dutiable goods without the interference of serviceable taxes.
Manufacturers, importers or exporters can leverage the benefits of a Free-Trade Zone. For the import of goods to India, an importer needs to pay taxes that get paid in a lump sum amount. A free-trade warehousing zone allows storage and management of taxable goods, and the customs duties can be paid once the product is out for delivery, just like a bonded warehouse.
A free trade zone consists of warehouses by various privately or publicly held organisations which offer services just like general warehousing.
These zones are thoughtfully located and networked with facilities that increase the efficiency of the overall supply chain. In India, the benefits of Free-Trade warehousing zone are:
- A business can have complete quality control before the payment of customs duty, which means losses due to rejected goods can save.
- Tax exemption for businesses for transporting and handling products from the port to the Free-Trade warehousing zone.
- Businesses can now take advantage of warehouses which ensures standardised safety, hazardous storage and maintenance/repair facilities with complete exemption from tariffs.
- A Free-Trade Warehousing Zone also provides value-addition services such as packing, labelling, palletisation and other authorised services.
In India, many new opportunities get lost because it is often hard to cover-up for the inefficiencies that lay in the warehousing and storage sectors. Hefty tariffs and customs duty compels a business to focus more on cost reduction.
Stockarea warehousing network helps businesses to book their storage space in a free-trade zone online. It is easy to explore from different options on Stockarea warehousing network and connect directly with the warehouse manager for discussing your storage space and service requirements in a Free trade zone. Talk to an expert today