Free Trade Warehousing Zone, a Special Category of Special Economic Zone, can be a 'stand-alone or a demarcated area within a sector-specific or multiproduct specific SEZ. FTWZ is a deemed Foreign Territory with special status and benefits. It is a dedicated platform for warehousing and trading, governed by SEZ act 2005 & Rules 2006.
FTWZ is a Single window Platform for Importation, Exportation, Duty & Tax deferment, Management of Allied Act, VAS. Benefits equivalent to FTZs (Free Trade Zone) operating globally. It encourages foreign trade and warehousing activities for overseas and Indian entities provides an integrated platform for sourcing & distribution management, including trading (in and out of India), thus reducing operational costs, especially without own setup.
FTWZ is near international gateways for direct deliveries from port/ airport reducing cargo holding time. One can move the shipment from international gateways to FTWZ without Customs assessment. Operates on a freely convertible currency model, i.e. payment for services in FOREX Provides taxation benefits such as Exemption on Customs/ countervailing /Excise Duty, Interest on Duty and Licensing & Compliance of Allied Acts (whilst goods are within FTWZ).
"Free Trade and Warehousing Zone" means a Special Economic Zone wherein mainly trading and warehousing and other activities related thereto are carried on; (Refer Section 2(n) of SEZ Act 2005)
Free Trade and Warehousing Zone Unit under "A Special Economic Zone" shall be deemed to be a territory outside the customs territory of India to undertake the authorized operations. (Refer per Section 53 of SEZ Act 2005)
A Special Economic Zone shall, with effect from such date as Central Government may notify, be deemed to be a port, inland container depot, land station and land customs stations, as the case may be, under section 7 of the Customs Act, 1962.
FTWZ Units can hold goods on behalf of Foreign Supplier & Buyer and Indian Supplier & Buyer as well. Refer rule 18(5) of SEZ Rules, 2006 (AS PER SPECIAL ECONOMIC ZONE INSTRUCTION NO.60 DT: 1st July 2010)
