Free Trade Zones: Just What You Need!
Free Trade Zones are delimited and enclosed areas of a national customs territory where foreign manufacturing firms, mainly producing for export, benefit from a certain number of fiscal and financial incentives.
Organizations can store, manufacture, and control products without being dependent on duty charges or normal tariff when they bring merchandise into FTZ.
The importance of logistics in the free trade zones cannot be overemphasized. Logistics providers need to oblige the necessities of transporters, by changing their frameworks to offer productive and ecologically favourable frameworks which empower supply chains with high logistics quality to expand the operations from the seaports to the hinterland.
Benefits Of Utilizing A Free Trade Zone
- Non-Conforming Or Damaged Products
A FTZ can be used to assess, fix, repack, or eliminate harmed and damaged items. Harmed and imperfect products can be annihilated inside the zone and therefore not liable to import obligations and taxes. Note that these cycles within a FTZ are viewed as control and should be preapproved by the country’s Customs and Border Protection.
- Deferral Of Duty
Organizations that import products to a FTZ can delay paying federal exercise tax and custom duties. Also, this significant FTZ advantage is the motivation behind why warehousing is a noticeable FTZ activity.
- Elimination Of Duty
As well as exploiting duty deferral, organizations utilizing a FTZ can likewise profit with certain duty exclusions. Organizations can generally bring merchandise into a zone and afterward send out those equivalent products without paying duty and excise taxes.
- Inverted Tariff Relief
The expression “inverted tariff” describes a circumstance whereby the tariff rate for the crude materials of a specific item is higher than the tax rate for the assembled product. In FTZ, organizations don’t need to pay the higher duty rate for the crude materials. All things being equal, they just need to pay the duty rate on the completed item.
There is need for proper logistics management in the Free Trade Zones and that is what we ensure in TGL. We guarantee that your cargo is coordinated efficiently. We can help you with the custom brokage and every required document you need to move cargo in the free trade zones in a timely and effective manner.
We understand the importance of providing swift, affordable, and safe delivery of your goods and are readily available in assisting your business to achieve its business goals while maximising profit and reducing cost through our logistics solutions.
With a team of over 50 years combined experience in freight forwarding, out-country and in-country logistics, compliance/documentation, and core technology services, we bring to the table a firm promise to provide a reliable platform for end-to-end logistics solutions for B2B and B2C businesses.
Get in touch with our Experts to discuss your Logistics requirements
Email: info@tgl.ng