What is the free trade zone?
Free trade zone (FTZ) is a geographical location that allows the goods to be imported without the need for different types of import obligations and related taxes. Sometimes it is called the free trade area or a duty zone, there are a number of transport ports and airports around the world that bear this designation. In these zones, the goods in question may be placed in temporary storage, exposed or even used in production without assessing obligations. Goods can often stay in the free trade zone for a certain period of time and then allow it to be exported from the country without having to offer any obligations.
In some areas of the world, the free trade zone is also known as an export processing zone. The aim is to use the airport or transport port attractive to businesses that sell goods on an international scale. The provision of a port that does not require an offer of tariffs or duties is the hope that more international companies Wvyužiju these zones, which is a step thatIt helps to stimulate the local economy in terms of job creation and at the same time increases the number of taxes collected from transport companies that have decided to use these ports.
Not all types of goods can look forward to the benefits of free trade zone. Most zones have certain limitations in terms of product types that can be accepted to ports and enjoy duty -free status. In addition, even if no obligations cannot be assessed during their stay in the zone, it does not mean that carriers do not have to pay storage and similar fees related to the use of equipment located in the zone.
Although there are exceptions, it is not uncommon for a free trade zone to be set up in an area that is considered to be somewhat undeveloped in terms of economic growth. This means that the nation may decide to identify seaport or airport that is somewhat distant from larger cities and developThis port to the free trade zone. In return, using these zones rather than sending directly to other ports of calls, government usually provides some motivation to companies using free trade zone. Measures of this type can often help stabilize the economy in the local area, provide local residents of other jobs and generally help areas slowly develop economically.