How FTWZ Benefit Exporters?
FTWZs are one of the special categories of the Special Economic Zone that focus on trading and warehousing. The main function of a FTWZ is to provide world class warehousing infrastructure for imports, exports and re-exports to international traders, suppliers and contract manufacturers so they can carry out transactions in free currency.
These special zones are considered foreign territories within the country for the purpose of import-export operations. This means that any goods or item entering the free trade warehousing zone (FTWZ) is seen as exported.
Such facilities enable vendors who are supplying to the units in FTWZs to claim export benefits as soon as the goods enter the free trade warehousing zone premises. Moreover, foreign entities can work with FTWZ units and do not need to have any permanent establishment to do business in a particular location. Beyond trading, a warehouse company in India in such a zone is in charge of shipment consolidation, labelling, packaging, repackaging, re-selling, and re-exporting of goods.
Further, these logistics facilities also incorporate refrigerated warehouse storage if needed, and even assemble kits.
Here are the following ways how FTWZ benefits exporters:
- Products from the mainland entering FTWZ are treated as deemed export goods, thus providing immediate benefits to suppliers.
- Local tax exemption, i.e., zero rated IGST on all activities like packaging material inside the zone is a great relief for business owners.
- Increased efficiency through lowered reversed logistics through quality control before dispatch from India ensures a positive brand image in the market.
- Compliance to export quotas of different categories can be enjoyed by vendors as supply into FTWZ is treated as deemed exports.
- Consolidation of shipments from multiple vendors to multiple locations ensures supply chain efficiencies, thus broadening a business’ scopes and opportunities.
- Increasing supply chain efficiencies while enhancing capital cash flow helps exporters reach their set target and goals.
Re-exporter benefit from FTWZ in the following ways:
- They are given exemption of Goods and Services tax on all activities conducted inside the free trade warehousing zone
- They are also exempted from custom and stamp duty on all products imported into FTWZ that are meant for re-export out of India.
- They are ensured a hassle-free re-export process.
- They are powered with foreign exchange transactions capability.
- They have the ability to leverage India’s cost, skill and geographic positioning advantage as a hub for regional and global distribution post value optimizing services.
OSV FTWZ is the most coveted and fastest growing industrial and residential warehousing destination in India that focuses on providing long-standing value to our valued customers.
We aim to create an efficient and reliable network of logistics trading and warehousing that nurtures entrepreneurship and enables career opportunities by bringing out socio-economic development robust infrastructure and ecologically sustainable technologies.