Free Trade Zone- Boon For Warehousing And Logistics

By Author: bvc group
Total Articles: 10
Comment this article

When we talk about logistics companies in India we talk about air logistics or worldwide logistics the first name that comes across is BVC group. They publish several articles to give knowledge of logistics and warehousing to the customers. Following article talks about free trade zone and its effects on the world trade and logistics.
Any free trade zone (FTZ) / export processing zone (EPZ), also known as foreign-trade zone, formerly free port is an area within a nation in which products may be landed, used, produced or remade, and again exported without intervening customs authorities. Only when the products are moved to costumer within the nation in which the prescribed zone is located do they become subject to the prevailing customs duties.
The company which is pioneer in secure transportation such as gold transportation to Jewellery exhibition in India says about free trade warehousing zones as.
The Free Trade Warehousing Zone (FTWZs) are a specific category of Special Economic Zone, which offer services such as door to door courier services, single stop for ...
... Customs clearance capability; integrated solutions, such as packing management, sorting, inspection, re-invoicing, strapping and kitting, assembly of complete and semi-knocked down kits, and taxation benefits. Actually the Free Trade & Warehousing Zones (FTWZ) is a different category of Special Economic Zones with a focus on trading and warehousing.
these Free trade warehousing zones (FTWZs) have been a phenomenal success in Jebel Ali, Singapore and Rotterdam. One has to go to these zones to have a sheer size and contribution to the regions they are located in becoming big logistic hubs.
The company which specializes in being international freight forwarders and famous for custom clearances
As per a leading newspaper, The Jebel Ali Free Zone (Jafza) accounts for around 28 per cent of all containers’ through put at Jebel Ali port and 11 per cent of all air logistics at Dubai International Airport. The airport planned out in the year 1985, it covers an area of 48 sq km and has over 6,400 companies from around the world. It sustains over 160,000 jobs in the UAE through its companies and accounts for over 50 per cent of Dubai’s exports
Genesis:
In our country, Free Trade and Warehousing Zone was brought by the Exim Policy with the sole objective to facilitate import and export of products and services. Each Zone was considered to have over 100 crores rs outlay and 5 lakh sq.mts built up area. Indian government introduced the FTWZ Policy as a part of Foreign Trade Policy (FTP) 2004-2009 governed by the public act of SEZ ACT, 2005 and the SEZ Rules, 2006 to leverage India’s strategic geographical location and cost and skill arbitrage.
In order to promote development and establishment of FTWZ the authority has permitted 100% FDI.
Concept:
Popularly FTWZ is termed as ‘Sanitized Zone’ designated as Foreign Territory for carrying on business. They are envisaged to be Integrated Zones & to be used as ‘International Trading Hubs’ and each Zone would provide ‘World Class’ Infrastructure for:
 Warehousing for various kinds of items
 Handling and Transportation machinery
 Commercial office space
 Telecom, power, water, etc
 Custom clearance
 Certainly FTWZ would be a key factor in Logistic and Global Supply chains – servicing both India and the Globe market.
Objective:
FTWZ is meant to create trade-related infrastructure to facilitate the export and import of goods and services with liberty to carry out trade transactions in free currency. This particular scheme is bound to cover many beautiful infrastructures for warehousing the goods including various items, handling the items facility, to and fro transportation, office space building connectivity, with one-stop clearance of import and export formality, to support the integrated Zones as ‘international trading hubs’. These Zones are planned to be established in areas proximate to seaports, airports or dry ports so as to offer easy access by rail and road.
They are also famous for prompt delivery in their Door to door courier services and customs clearance in india. They also have a wing of international tours and travel which specialises both in corporate as well as personal tours.