FREE TRADE AND WAREHOUSING ZONES

 

 

 

 

 

1.       Introduction

2.       Establishment of FT&WZ

3.       Processing and non-processing area

4.       Maintenance of FT&WZ

5.       Functioning

6.       Net Foreign Exchange criteria

7.       Benefits of FT&WZ 

8.       Free Trade Warehousing Private Limited

9.       Categories of Users

 

1.       Introduction

The Free Trade & Warehousing Zones (FTWZ) is a special category of Special Economic Zones with a focus on trading and warehousing. Chapter 7A of the Foreign trade Policy (2004-09) had introduced this concept before introduction in Special Economic Zones Act 2005.

The Special Economic Zones Act, 2005 defines Free Trade and Warehousing zones under Sec 2 (n) as-

“A Special Economic zone wherein mainly trading and warehousing and other related activities related thereto are carried on”

Hence, these Zones will operate on the same lines as SEZ and the provisions of the Special Economic Zones Act, 2005 and Special Economic Zones Rules 2006 shall apply to developers of FT&WZ and units in FT&WZ.

This scheme aims at creation of world class infrastructure for warehousing of various products, latest equipment, handling and transportation facilities, commercial office space, water, power, communication, and connectivity with one-stop clearance of import and export formalities to bolster the integrated zones as international trading hubs.

These zones would be established in areas proximate to seaports, airports or dry ports so as to offer easy access by rail and road.

2.       Establishment of FT&WZ

1)       Proposals for setting up of FT&WZs may be made by

a)       public sector undertakings or

b)