INTRODUCTION TO FTWZ
FTWZ or Free Trade Warehousing Zone is a speciality service provided by Vertexcrest Logistics.
Free Trade Warehousing Zone (FTWZ) is a dedicated platform designed to streamline global trade and warehousing activities for Indian and international entities. Governed by SEZ acts and rules, FTWZ operates as a ‘supposedly foreign territory’, offering benefits equivalent to global Free Trade Zones (FTZs). FTWZ is a vital link in global logistics and supply chain management.
Strategically located near international gateways, it ensures direct deliveries from ports or airports, reducing cargo holding time without customs assessment. Operated on a freely convertible currency model with payments in FOREX, FTWZ provides significant cost savings through exemptions on customs and excise duties, interest on duties, and compliance management for allied acts.
FTWZ offers an integrated facility that supports importation, exportation, duty and tax deferment, and value-added services (VAS) such as packaging, labeling and so on, enabling efficient sourcing and distribution management while reducing operational costs and eliminating the need for a dedicated setup.
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ADVANTAGES OF FTWZ
Duty-Free Import Cargo Transhipment
Import cargo can be moved to FTWZ without incurring duties, enabling smoother and cost-effective logistics for businesses.
Streamlined Export
Processes
Exports are made seamless with efficient systems and procedures, ensuring quick and hassle-free operations.
24/7 Customs
Clearance
Round-the-clock customs clearance eliminates delays, ensuring faster movement of goods in and out of the FTWZ.
Single Window for
Import and Export
All import and export formalities are handled in the FTWZ itself, simplifying documentation and reducing administrative bottlenecks.
Duty
Deferment
By deferring duty payments, businesses can improve cash flow and allocate resources more efficiently.
Duty Drawbacks and
Benefits
Goods supplied from DTA to FTWZ are eligible for duty drawbacks and other benefits, boosting profitability and encouraging local trade integration.
Import Duty Exemption
on Goods Re-Exported
Re-exporting goods to third countries from FTWZ incurs no import duties, making it a strategic choice for global trade.
Temporary Removal
without Duty Payments
Cargo can be temporarily removed for exhibitions and events without duty payments, offering businesses flexibility in showcasing their products.
VALUE ADDED SERVICES
At Vertexcrest Logistics’ Free Trade Warehousing Zone (FTWZ), we go beyond warehousing to deliver need-based value-added services that elevate your supply chain efficiency.
Ensures that every product meets your standards with comprehensive inspections conducted by our expert team.
Optimize product presentation and protection with customized packaging and re-packaging solutions designed for diverse markets.
From regulatory compliance to branding, our precise labeling services keep your good market ready.
Combine products into kits for promotional bundles or specialized distribution, saving time and enhancing customer satisfaction.
Simplify inventory management and tracking with professional bar-coding solutions tailored to your logistics needs.
Speed up order fulfilment with our pick-and-pack services, ensuring accuracy and efficiency at every step.
Manage returns and recycling effortlessly with our streamlined reverse logistics processes, minimizing waste and maximizing value recovery.
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OPERATIONAL EFFICIENCY AT FTWZ
Faster Clearance
FTWZ ensures accelerated customs clearance with its round-the-clock operations and single-window system. By minimizing procedural delays, businesses can move goods in and out efficiently, significantly reducing lead times and enhancing productivity.
Reduced Bottlenecks
Direct delivery from ports to FTWZ eliminates delays, ensuring cargo flows seamlessly without interruptions or customs hold-ups.
Value-Added Services
From packaging to labeling, FTWZ offers tailored solutions, transforming your goods for diverse markets while saving time and costs.
Cost-Effective Logistics
Enjoy duty-free re-exports and tax breaks, paired with premium warehousing, to optimize trade operations and save big.
COMPARISON OF FTWZ AND BONDED WAREHOUSE
| FEATURE | FTWZ | BONDED WARE HOUSE |
|---|---|---|
| Definition | A designated area is treated as foreign territory for trade and warehousing. Goods can be stored, processed and distributed without attracting immediate customs duties. | A storage facility licensed by customs authorities to hold imported goods without immediate payment of duties. |
| Customs Duty | Deferred until goods are moved out of the FTWZ for domestic consumption. | Deferred until the goods leave the warehouse for sale or use. |
| Ownership | Goods can be owned by foreign or domestic entities, facilitating cross-border trade. | Generally owned by domestic entities with stricter ownership regulations. |
| Activities Allowed | Value-added services like packaging, labeling, assembly, and minor processing are permitted. | Primarily used for storage, limited processing activities may be allowed under specific conditions. |
| Inbound and Outbound Process | Takes 3 working days for inbound and 1 working day for outbound process with less documentation for both. | Takes 5 working days for inbound and 4 working days for outbound processes with difficult documentation. |
| Scope | Suitable for re-exporters, global distribution, and companies requiring extensive value addition. | Ideal for companies importing goods for domestic sale or short-term storage. |
| Duration of storage | Flexible storage; goods can remain for extended periods. | Restricted customs regulations; maximum tenure by jurisdiction. |
| Tax Benefits | Offers tax incentives, such as exemptions on import/export duties, service tax, and sales tax. | Limited tax benefits; focused on duty deferral only. |
WHY CHOOSE VERTEXCREST FTWZ
Situated near international gateways, Vertexcrest FTWZ ensures faster cargo movement with reduced holding times.
From duty-free transhipment to tax exemptions, we provide a one-stop FTWZ for hassle-free import-export operations.
Benefit from extensive, versatile storage options designed to accommodate diverse goods, from bulk cargo to specialized items.
Enjoy uninterrupted operations with round-the-clock customs clearance and dedicated on-site support to resolve trade challenges.
Stand out in the market with our specialized VAS services like packaging, labeling, kitting, barcoding, and reverse logistics.
Access a one-stop solution for import, export, and distribution needs, minimizing complexity and costs.
From temporary cargo removal to re-exports, we offer well-tailored solutions for diverse business needs and trade requirements.
Start Your Logistics Journey with Us
Ready to simplify your logistics? Request a freight quote today and learn how VertexCrest can provide solutions that align with your business goals.