Looking for Ways to Defer Customs Duty on your Pharma Imports to India?
Every consignment that is shipped from a foreign land to another is subject to certain taxes, fees, and customs duties as per the laws governing the import-export trade in the importer country. These taxes and fees have a direct impact on the overall cost of the merchandise or raw material brought in from another country.
Irrespective of the goods or raw materials you import, for example, pharmacy products, you will have to pay the customs duty and taxes (GST in India) if you are importing anything. As a merchant, you have to defer these duties and fees as much as possible and that is where FTWZ comes into the picture.
If you are a merchant involved in the import-export of pharma products to/from India, there is a way through which you can save your money by deferring taxes and customs duties. By opting for free trade warehousing zones (FTWZs) in India, you can say goodbye to immediate duties and tax payments on all imported items.
In fact, with a little more tweak, you can actually optimize your entire pharma supply chain in India and can benefit from FTWZs.
What does duty deferment mean?
Duty deferment benefit is extended by the FTWZs to all the imported goods. Duty deferment is a mechanism through which duty payment is delinked from customs clearance. Using FTWZs for warehousing imported goods, you pay after your goods have been cleared for DTA Sales and not before that. Moreover, you can enjoy several benefits such as –
- Duty-free and Tax-free storage for 3 years at a geographical location within India
- Packaging/Re-packaging/Kitting/QC/VAS on Duty-Free Goods
- Foreign companies can export goods to India with/without having any registration/representation/licenses in India
- Temporary-Importation for display and exhibition purposes is simpler and more convenient than ATA Carnet
- Duty-Free Distribution Hub for within India or supplies to other countries
- Goods can Re-Exported, Duty-free with or without value addition
- And much more when you use free/foreign trade zones for importing goods in India from anywhere in the world.
Wondering how FTWZs allow duty deferment?
To understand this, you will need to learn about the free trade zones first!!
By definition, the free trade zones are specifically designated areas inside the SEZ – Special Economic Zones that are considered outside of the territory of the country despite falling within the geographical boundaries of the country where goods are imported.
In other words, the laws of the land do not apply to the goods that are imported directly into the free trade zones. So, there is no customs duty to be paid or any other fees or taxes if you use free trade warehousing zones for importing your pharma products.
A great advantage that the pharma supply chain in India can gain from the FTWZs is the environment controlled, hygienic, temperature-controlled, cold, secured storage and warehousing of pharma products that need extra care and safety during storage and handling.
Countless pharma businesses are benefitting from OSV’s free trade zone warehousing solutions. Our FTWZ warehouses are located across the top cities including Delhi NCR, Gujarat, Mumbai, and Chennai. Apart from the benefits of FTWZ, We offer value-added services in our FTWZ warehouses including storage, kitting, labeling, repackaging, etc.
For more information, please contact our FTWZ warehousing experts!!