Free
Trade Zones
Free Zones are defined as special
regions within the country that are deemed to be outside of the
customs border and where the valid regulations related to foreign
trade and other financial and economic areas are either not
applicable, are partly applicable or in which new regulations are
tested.
Free Zones are also the regions
where a more convenient business climate is provided in order to
increase trade volume and export for certain industrial and
commercial activities as compared to other parts of country.
Some advantages of
Free Trade Zones:
No duty is ever paid on
re-exported merchandise.
If the merchandise is
sold domestically, no duty is paid until it leaves the zone or the
zones.
Generally, no duty is
paid on waste or yield loss.
Duty on scrap is
eliminated or reduced.
Generally, if foreign
merchandise is manufactured into a product with a lower duty rate,
then the lower duty rate applies on the foreign content when duty
is paid.
Merchandise in a
foreign-trade zone may be stored, repackaged, manipulated,
manufactured, destroyed or otherwise altered or changed.
Information >>
|
