One Stop Solution for Your International Business
Free Trade Warehousing is an international concept formulated to promote global trade practices and enhance trade volumes and relationships between nations & to offer liberal benefits and convenience to its International trade economy.
It allows to import/export to and from India with benefits of duty deferment, tax benefits, cost efficiency and better distribution channels. It also empowers to re-export goods from India without the burden of Indian duties and taxes that are otherwise levied on goods once brought to India (DTA). It additionally offers clearances not only in parts and portions but also with value additions such as re-packing, re-labeling, bottling, demonstration, QC, testing, kitting, consolidation, de-consolidation palletization, etc.
The zone is established strategically to offer time-and-cost advantage by enabling quicker regulatory clearances, tax and duty incentives, flexibility, visibility and reduced working capital expenses. It also lets you leverage India’s cost and skill arbitrage, and empowers you with its strategic geographical position.
You benefit from our experience in delivering effective solutions to the complex global supply chains of some of the world’s biggest corporations.
You benefit from every innovation, whether it involves a simple extension to our Air and Ocean Freight products, whether it means a development in warehousing.
All of which explains why you’ll find the team of outstanding support at TransCargo ready to apply their passion for solutions in support of your business.
FTWZ - An Overview
The scheme envisages duty free import of all permissible goods for warehousing.
The warehoused Goods can be sold to DTA and the Duty applies only upon clearance and that too on desired quantities only.
Accessibility to operate in India without any licensing and creating any Tax Liabilities in India.
The non duty paid goods are permissible for storage up to THREE years without any
duties, interests or Taxes.
Packing or re-packing with processing and labeling can be done on Non-custom duty paid goods as per customer’s business model or marketing requirements.
An internationally accepted and appreciated facility now available at a prime locations in India additionally offering its cost, labor, geographic and skill advantages
The facility offers a state of the art infrastructure for its clients to vouch for with an amazing range of benefits
Can be treated as a consolidation center for trader exporters to bring in goods from multiple vendors and countries and also gain logistics and Tax benefits or to de-consolidate imports and release partially.
Who Benefits with OSV FTWZ?
International Traders
International Traders who want to keep seller’s and buyer’s info confidential.
International Airlines
International Airlines Company that wants to keep their valuable spare parts for long time without any obligation and timely retrieval
Foreign Suppliers
Foreign Suppliers who doesn’t have any entity in India but want to set up an international transit warehouse for Indian and Overseas markets.
Bulk Importers
Bulk Importers of Medicine, Medical Equipment, Polymers,Chemicals, Machinery, Spares, Fabrics, Lining, Fusible Interlining, Hangers, White goods, Electronics & Electric products, Packaged Food Items, Cosmetic items, etc.
Indian Importer
An Indian Importer having IEC & GST number.
Traders & Foreign Buyer
Traders & Foreign Buyer Consolidators of Indian goods for Export purpose.
International Automobile Company
International Automobile Company that wants to keep their spares & parts.
Display / Demonstration / Exhibition
Looking to Import cargo for Display / Demonstration / Exhibition etc.
CBW V/S FTWZ : A Comparison
| Functions | Customs Bonded Warehouse | OSV Free Trade Warehousing Zone |
|---|---|---|
| Requirement of Import Export code | ||
| Requirement of Import Export code | Mandatory | Not Required |
| Requirement of GST number | ||
| Requirement of GST number | Mandatory | Not Required |
| Prior Bill of Entry to be filed | ||
| Prior Bill of Entry to be filed | Mandatory | Mandatory |
| Permissible Cargo for warehousing | ||
| Permissible Cargo for warehousing | Foreign Cargos Only | Foreign & Domestic Cargos |
| Paper work and Delay | ||
| Paper work and Delay | Complex and delays may occur | Simple and express clearance |
| Prior NOC | ||
| Prior NOC | MANDATORY relevant Participating Agencies | Not Required |
| Customs Bond | ||
| Customs Bond | Triple Duty Bonds required for all warehouse entries from consignee | Not Required |
| Payment of Duty | ||
| Payment of Duty | Duties are due prior to release from bonded warehouse | Payment of Duty is only for & applicable at the time of DTA Clearance |
| Interest on Applicable Duty | ||
| Interest on Applicable Duty | 15 % (P.A) applicable after 90 Days on Duties | Not Applicable |
| Storage Period | ||
| Storage Period | Maximum up to 3 MONTHS (extendable only on payment of interests limited to 1 year) | 3 YEARS (extendable up to 5 years) |
| Permitted Activity | ||
| Permitted Activity | Sorting and Repacking only after cumbersome procedures & special permissions | Labeling, Re-labelling, packing, re-packing, kitting, consolidation, de-consolidation, Testing, Bottling, Palletization, etc. is freely permissible |
| Insurance | ||
| Insurance | Limited | Comprehensive |
| Acceptable payment against Sale | ||
| Acceptable payment against Sale | Indian Rupee only | Foreign Exchange and Indian Rupees |