FTZ Warehouse in India can help You Defer Customs Duty
Importing goods is easy today, thanks to the seamless connectivity across the globe. However, the real challenge lies in bearing the hassles of the transit plus the taxes & duties that accompany each consignment. For example, when importing goods to India, you need to bear in mind the various customs duties and taxes that are levied by the governments here on all imports.
But did you know that these duties and taxes can be deferred if you use India’s FTZ warehouse to store imported goods?
What is an FTZ Warehouse in India?
FTZ or free trade zone is an area within the boundaries of a nation but deemed as a foreign territory, which means the commercial laws of the land do not apply to such zones. In other words, when you use the free trade zone warehouse for storing your imported goods, they are not subject to the taxes and duties that would otherwise apply if you import them directly into the country’s territory via a general warehousing model.
What is Duty Deferment?
When you use the FTZ warehouse in India for storing goods, no taxes or duties are applicable on the shipment upfront. You can use these zones to easily defer the heavy customs duty process.
Remember, customs duty and taxes do not apply as long as your goods are inside these units but they come into effect only when you choose to sell the goods in the local markets of India. Re-exports from India also enjoy Duty-Free status.
What all Operations are allowed inside the FTZ warehouse in India?
As such, the operations that can be performed inside a free trade zone include Repackaging, Kitting, Re-labelling, Lashing, Shrink Wrapping, Strapping, Palletization, Bottling, Clubbing, Quality Checking, so on and so forth.
Some of the best and most preferred free trade zones across the nation, such as those at OSV, allow several operations except manufacturing, changing the country of origin, changing the content/ ingredient of the commodity, and manufacturing/expiry date at these zones. The best part of using a free zone warehouse for storing imported goods is that you don’t have to pay customs duty upfront or while re-exporting the imported goods later on.
How Long Can I Store My Goods in OSV Free Zone Warehouses?
You can store the goods for 3 years, which is further extendable to 5 years if required. The facilities are truly world-class with temperature-controlled, hygienic, secure, and safe storage units.
OSV’s free trade zones are located across India in prominent tier I cities including – Delhi NCR, Mumbai, Chennai, and Gujarat. These FTZ warehouses are located in top cities across India that you can utilize for storing imported goods with full confidence with added security and protection.
In short, you can use OSV’s FTZ warehousing and storage facilities for keeping your goods in perfect condition with deferred taxes or duties. To learn more about OSV’s free trade zone warehouses in India, you may connect with the experts at OSV.