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 >>