Free trade warehousing zone

An FTWZ is a special category of special economic zone (SEZ). It can either be a stand-alone FTWZ or a demarcated area within a sector-specific or multi-product-specific SEZ. It is deemed a foreign territory with special status and benefits.

Rhenus India is your partner for FTWZs

Why choose an FTWZ?

Offers benefits equivalent to FTZs (free trade zones) operating globally
Encourages foreign trade and warehousing activities for overseas and Indian entities
Provides an integrated platform for sourcing and distribution of management, including trading (in and out of India) thus reducing operational costs, especially without own set-up
Close proximity to international gateways for direct deliveries from port / airport, in turn reducing cargo holding time
Ability to move shipments from international gateways to FTWZ swithout customs assessment
Operates on a freely convertible currency model, i.e. payment of services in FOREX
Provides taxation benefits such as exemption on customs / GST, interest on duty, licensing and compliance of allied acts (while goods are within the FTWZ)

Activities allowed in an FTWZ

Storage
Handling
Transportation
WH receipts and documentation
Cutting
Palletisation
Bagging
Bubble-wrapping
Tagging
Packing
Labelling
Painting
Crating
Strapping
Washing
Bottling
Quality assurance
Consolidation
Repairs and maintenance
Cartonisation
Refurbishment

FTWZ benefits

For imports:

Flexibility towards end distribution in India
Duty deferment benefits (freeing up working capital)
Quality control capability prior to duty payment
Exemption on SAD, VAT and CST on imports through the FTWZ
Hassle-free re-exports in terms of regulatory / duty implications
Reduced buffer stock
GST exemption on services availed in the FTWZ
Lowered product costs
Foreign exchange transaction capabilities

For exports:

Products from India entering an FTWZ are treated as deemed exports, providing immediate benefits to the suppliers
Local tax exemption (e.g. CST, sales tax, excise and VAT, now GST) on all activities conducted in the FTWZ
Export quotas can be met for companies exporting into the FTWZ
Increased efficiency through lowered reverse logistics and quality control before dispatch from India
Foreign exchange transaction capability
Increased supply chain efficiencies (forward and reverse) while capital cash flow is enhanced

For re-exports:

GST exemption on all activities conducted in the FTWZ including rental and labour
Exemption on customs and stamp duty on products imported into FTWZ, which are meant for re-export out of India
Hassle-free re-export process
Permission of 100 percent FDI for the set-up of units by the unit holder of the FTWZ
Ability to leverage India’s cost skill and geographic positioning advantage as a hub for regional / global distribution post value optimising activity

Any questions?

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