Objectives and Importance of Free Trade Warehousing in India
The goal of free trade warehouse zones is to stimulate economic activity by offering tax and customs breaks to businesses that export and import goods Free trade zones are used to land, assemble, handle, manufacture, and re-export goods across various countries, facilitating the movement and flow of goods that are used as warehouse hubs by multinational corporations
FreeTrade warehousing zones play a crucial role in supply chain management, for import, export and re-export.These zones, which are typically located near ports or airports, allow businesses to store goods without paying import duties or taxes and interventions This saves companies a significant amount of money and helps them to move goods more quickly and efficiently The zones can also help to create jobs and spur economic development in the surrounding area
The Benefits of FTWZ for Customers in India are:
Hassle-free and efficient import and export of goods: FTWZ promotes hassle-free import and export of goods by providing a one-stop solution for all logistics and warehousing requirements This includes ensuring the smooth flow of goods through Customs clearance, providing warehousing and storage facilities, and offering value-added services such as packaging and labelling. FTWZs also offer option to sell the goods to Domestic Indian for third country exports
Benefitsofpreferentialtariffsandduty-freeimports:Acustomercanavailthebenefitsof preferentialtariffsandduty-freeimportsusingFTWZbyshippingtheirgoodstoanFTWZ.The FTWZwillthenprocessthegoodsandreleasethemtothecustomerduty-freeandata preferentialtariff.
Advantage of the streamlined customs procedures: The customer can take advantage of the streamlined customs procedures in FTWZ by working with an expert like Rhenus who are well experienced in handling FTWZ shipments. By using a Rhenus that is experience in handling FTWZ shipments, the customer can be sure that their shipment will be processed smoothly and efficiently
24x7 security and surveillance: While the goods are in the FTWZ they are secured under the observation of their management team which ensures confidentiality and 24x7 security and surveillance.
Saves time and adds Value to the Goods: Proximity to international gateways for direct deliveries from port/airport which reduces time consumption and makes the process faster Furthermore, FreeTrade Warehousing facilities ensure that the warehousing needs of goods are met in a suitable environment, such as maintaining temperature and cold storage arrangements, etc
Saves costs: FTWZ offers a variety of services that can save customers money For example, FTWZ can help customers find the best shipping rates, consolidate orders, and track shipments Also, no customs duties are imposed. In addition, FTWZ offers discounts for customers who use its services frequently Moreover, companies don’t have to set up their infrastructure to regulate these activities and they also make a profit using FTWZ Income tax rebate on profit earned through export transaction (where applicable)
OverandabovethefewlistedpointwhenaforeignsupplierdotheirbusinesswithFTWZ,they getseveralbenefits–Someoftheminclude–
● ForeignExchangeCapability
By partnering with Rhenus India services for free trade warehousing, you can make your foreign trade more effective
In Global Market India is poised to grow at a rapid pace, Indian market is conducive for companies based in Europe and US as the Indian government is given a push for making India a HUB for the world of trade
● DutyDeferment
● GSTExemption
The Simple cost of storing a container in a European country and US can be compared with FTWZ and cost efficiency immediately would be visible. Further growing cost of Oil has inflated the price in European market and the logistics time and cost is also fluctuating day by day
Companies can store their goods in Indian FTWZ up to 5 years without payment of Duties and Taxes also without having any entity in India
Such model would help plan End deliveries to the Customer inAsian market as well as cater to the huge demand in Indian market
In tough times it is important to find new ways to work and make a favorable atmosphere and take the benefit of first mover advantage with dynamic vision.
We at Rhenus are always looking at solutions , We feel it’s the right time to offer this solution to the market and bring in fresh perspective.
