Free Trade Zone (FTZ)
Special customs regimes
Geographical area where goods can be stored without duties.
A free trade zone (or FTZ) is a specific geographic area where goods can be imported, stored, handled, manufactured, or reconfigured without being subject to the usual customs duties. These zones are often located near ports, airports, or land borders to facilitate international trade.
Advantages of Free Trade Zones
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Cost Reduction: Companies can save on customs duties and taxes, reducing overall import and export costs.
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Logistical Flexibility: Goods can be stored for an indefinite period, allowing for more flexible inventory management.
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Economic Stimulation: Free trade zones attract foreign investment and create local jobs, thus stimulating the regional economy.
Operation
In a free trade zone, companies can perform various operations such as assembly, repackaging, or processing of goods. Finished products can then be exported without customs duties or, if intended for the domestic market, duties are only paid on the added value.
Practical Tips
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Cost Assessment: Before setting up in a free trade zone, it is crucial to evaluate potential savings against installation and operational costs.
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Legal Compliance: Ensure you fully understand local and international regulations to avoid penalties.
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Logistical Optimization: Use free trade zones to optimize your supply chain and reduce delivery times.
In summary, free trade zones offer a unique opportunity for companies looking to optimize their international operations while reducing costs. They play a key role in global trade by facilitating exchanges and stimulating the local economy.