Why Should You Use OSV Foreign Trade Zone in India?

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foreign trade zone in indiaIf you are an importer/exporter to India and wonder if using a free/foreign trade zone in India is a good idea or not, you must read this article to know all the amazing benefits the free trade zones have to offer and why OSV should be your choice if you are looking for the same. But before we get into the benefits, it is important to understand the concept of free trade zones. So, here we go!

Free Trade Zone in India – Explained

A free trade zone/free trade warehousing zone or FTWZ in India is an area specifically designated to allow a merchant/trader/contract manufacturer to import/export/re-export goods without inviting serviceable taxes and customs duties. When using FTWZ for importing goods to India, a merchant can store and manage taxable goods without worrying about customs duties as it is paid only when the goods are finally out for delivery. What’s more, the duties can be completely avoided if you choose to re-export the goods directly from the FTWZ.

There are several FTZs (owned by public organizations and private players such as OSV) inside the SEZs that offer various services apart from warehousing including labeling, repackaging, kitting, strapping, inspecting, sorting, etc. These free trade zones are strategically located and well-connected with world-class facilities that further augment the efficiency of the supply chain.

The benefits you should expect from an FTZ are discussed below for your quick reference.

Benefits to Expect from Free Trade Zones

  • Duty & Tax Deferment
  • 3 Years Tenure of Storage extendable up to 5 years
  • Ability to do Business Remotely without having any permanent establishment
  • No need for Drug Licenses/BIS/FSSAI/Approvals/Certifications
  • No Detention & Demurrage
  • Value-Added Services such as Re-Labeling, Re-packaging, Kitting, Palletization, Lashing, Shrink Wrapping, Strapping, and other permitted services.

Many business opportunities are lost as it’s sometimes very difficult to cover up for inefficiencies that are a part and parcel of the logistics sector. Heavy customs duties and hefty tariffs are among the top reasons why businesses look for ways to reduce their costs.

OSV is proud to have world-class warehouses in the foreign trade zones in India using which businesses can save their money, time, and effort in various warehousing and logistics operations. As a trusted and highly sought-after FTZ warehousing and third-party logistics services provider in India, OSV offers complete free trade warehousing zone and logistics support that help improve the entire supply chain.


Here are 3 main reasons for choosing OSV FTWZ –

1. State of the Art of Infrastructure – OSV’s FTWZs has a world-class infrastructure with advanced machinery, magnetic flooring, respective temperature, cold storage spaces, and a lot more

2. Customs Clearance – In the case of other warehousing mediums customs clearance is something that is very hectic and complex. As FTWZ is deemed to be a foreign territory the compliances of customs clearances are lessened. In the case of other mediums where 3 to 4 days are generally taken in clearing the goods, in OSV FTWZ it reduces to 24 to 48 hrs

3. Just in Time Delivery – OSV FTWZs through the JIT model reduce the need to store excessive levels of materials in a warehouse thus making the companies supply chain more efficient and responsive

Our FTWZs have been acknowledged by countries such as Japan, Switzerland, Dubai, Singapore, China, and the USA. In India, our FTZs are located across tier 1 cities including Delhi, Mumbai, Chennai, and Gujarat with the least distance from ICDs/Ports.

Are you ready to reap the benefits of free trade zones for your import-export business?

Call us now or drop an email at support@onnsynex.com

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