Asian Supply Chain Solutions has been a pioneer in offering innovative supply chain solutions using the unique Free Trade Warehousing Zones since its inception in India.
FTWZ (Free Trade and Warehousing Zones) is a deemed foreign territory within India where international trading and warehousing is done as per policy of the Government of India (GoI). It was announced in the Foreign Trade Policy 2004-09 to set up Free Trade and Warehousing Zones (FTWZ) to create trade-related infrastructure to facilitate the import and export of goods and services with the freedom to carry out trade transactions in free currency.
On June 23, 2005, the Parliament of India passed the Special Economic Zones Act 2005 and on February 10, 2006, Government of India notified Special Economic Zone Rules 2006. The Free Trade and Warehousing Zones (FTWZ) is a special category of Special Economic Zone and is governed by the provisions of the SEZ Act and the Rules.
FTWZ are deemed Ports as per Section 7 of Customs Act of India and are envisaged to be integrated zones and to be used as International Trading Hubs where domestic as well as foreign entities can hold stocks for trading or warehousing. FTWZ are the only zones where government of India allows repacking and relabelling without the need for a separate license or registration.
Asian’s majority of business is through the Free Trade Zone at Panvel, Mumbai, Maharashtra, India as it’s just 24 km from Nhava Sheva which handles 60% of sea trade of containers from India and also has an international airport in close proximity. Other options in Khurja (North India), Mundra (North West India) and Sriperumbudur (South India) are also available.
Benefits of Using FTWZ
| Benefits for Importers | Benefits for Exporters | Benefits for Third Country Trading |
| Working capital saving by Duty Deferment for upto TWO years. No Stamp Duty on imports | Supplies from Indian parties to FTWZ are treated as deemed exports. | Exemption from custom and stamp duty on products imported into FTWZ; meant for re-export out of India |
| Optimise inventory by setting up National Import Distribution hubs. | No GST on supplies from Indian Parties to FTWZ. | Hassle-free re-export process |
| Duty Free supplies to units in SEZ in India. | Export Consolidation possible. | Ideal for Traders who want to mask their source & margins. |
| Foreign Exchange billing | Repackaging & Kitting possible of supplies of multiple suppliers. | Repackaging & Kitting possible of supplies of multiple suppliers. |
| Labelling as per Legal Metrology Act & Drugs & Cosmetics Act | Foreign Exchange transaction capability | Ability to add products sourced from India. |
| Splitting of one consignment to different parties | Ideal for Traders who want to mask their source & margins. | Take benefits of international trade agreements |
| Temporary imports for display or exhibition without duty payment | Increased efficiency through lowered reverse logistics through quality control before dispatch from India | Ability to leverage India’s cost, skill & geographic positioning advantage as a hub for regional/global distribution post value optimizing activities |
| Vendor Managed Inventories (VMI) by Overseas principal holding stocks & offer JIT | Overseas parties can set up their International Sourcing Hubs |
Comparison between Customs Bonded Warehouse and FTWZ
| Customs Bonded Warehouse | Free Trade Warehousing Zone |
| Cargo can be stored for a period of 90 days without paying Custom duty | Cargo can be stored for a period of 2 years without paying Custom duty |
| Interest on custom duty needs to be paid post 90 days free storage period. | Interest free storage up to 2 years |
| Limited scope for Value additions inside Custom bonded warehouse | Value added services like labeling, repacking & assembling & consolidation allowed. |
| Labeling or repacking will be construed as manufacturing and liable to registration | Labeling or Repacking or any activity in a FTWZ will not attract registration as its an authorized activity. |
| No exemption of Stamp duty on products cleared from Custom bonded warehouse | Products cleared from FTWZ are exempt of stamp duty |
| No part shipment sale to different parties on products cleared from Custom bonded warehouse | Products cleared from FTWZ are allowed for clearance as part shipments wither for India or export. |
| Triple duty bond to be submitted by importer for goods cleared into Custom bonded warehouse | No Triple duty bond to be submitted by importer for goods cleared into FTWZ |
| Customs Duty payable on Inbound Bill of Entry value | Customs duty payable on Outbound Bill of Entry value incase of sale to third party |
To know how we can customise a solution using FTWZ, contact us…
Free trade warehousing zone services in India
Asiansupplychain.co.in also provides the best free trade warehousing zone services in India that facilitate international trade and supply chain management. These logistics hubs of their own on a supposedly foreign territory under Special Economic Zone regulations enable firms to store and consolidate cargo nearer major ports such as Panvel near Nhava Sheva, Mundra, Khurja, and Sriperumbudur. Using these infrastructure facilities allows foreign and domestic businesses to carry out foreign exchange transactions and defer customs payments for up to two years without needing a triple duty bond.
Key Features Of FTWZ Facilities
Operating within a Free Trade and Warehousing Zone delivers key financial savings, seamless trade distribution, and complete freedom for cargo processing without extra registration steps.
Duty Deferment Warehousing India
Store incoming international cargo safely for up to two years without paying customs duty, stamp duties, or interest charges, significantly easing upfront working capital demands.
FTWZ Vendor Managed Inventory
Outside suppliers may store stock at a local hub to provide just-in-time shipments to local purchasers but still maintain ownership until final clearance.
Value-Added Processing Services
Perform repacking, custom relabeling, kitting, and product splitting without converting the process into manufacturing or triggering additional registration requirements.
Duty-Free Re-Exporting And Quality Control
Re-export goods out of India without customs duties, or execute quality inspections before domestic entry to cut down on reverse logistics expenses.
Multi-Party Clearance Flexibility
Clear cargo through part-shipment mechanisms to multiple buyers or units located inside Indian Special Economic Zones based on outbound bill of entry values.
-Questions people actually ask
Free Trade Warehousing Zones
Free Trade Warehousing Zone (FTWZ) services in India provide businesses with specialized warehousing and logistics facilities that support the storage, handling, consolidation, and distribution of imported and exported goods. These facilities can help businesses manage international inventory more efficiently while benefiting from applicable customs and trade-related provisions.
Importers, exporters, manufacturers, distributors, and international trading companies can benefit from Free Trade Warehousing Zone services in India. FTWZ facilities are particularly useful for businesses that handle international shipments, need to store goods before final distribution, or want greater flexibility in managing their supply chain and inventory.
FTWZ vendor managed inventory is an inventory management approach where the vendor or supplier takes responsibility for monitoring and replenishing stock stored within an FTWZ facility. Based on agreed inventory levels and customer requirements, the vendor can coordinate replenishment to maintain adequate stock availability and reduce the risk of supply interruptions.
FTWZ vendor managed inventory can improve supply chain efficiency by providing better visibility and control over stock levels. Instead of waiting for inventory shortages, suppliers can monitor consumption and plan replenishment proactively. This approach can help reduce excess inventory, improve product availability, and streamline coordination between suppliers, warehouses, and customers.
Duty deferment warehousing in India allows eligible imported goods to be stored under applicable customs warehousing provisions before the relevant duties are paid. This can provide businesses with greater flexibility in managing the timing of customs duty payments while goods remain in approved warehousing facilities, subject to applicable regulations and conditions.
Duty deferment warehousing in India can help importers manage cash flow by postponing applicable customs duty payments until the goods are cleared for domestic consumption, where permitted. It may also support better inventory planning by allowing businesses to hold imported goods in a controlled warehouse environment until they are required for distribution or further supply-chain operations.