Free trade and warehousing zone
Also called: FTWZ · Topic: Infrastructure: Transport, Communications and Energy · NCERT: Beyond NCERT
Meaning
A free trade and warehousing zone (FTWZ) is a special economic zone that is set up for trading and warehousing rather than manufacturing. It operates under the SEZ Act 2005. Goods can be stored, handled and re-exported without paying customs duty. This lets India act as a storage and distribution base for regional trade, which brings warehousing jobs and logistics business into the country.
Example
A foreign company can bring a large shipment of electronics into an Indian FTWZ without paying duty. It stores the goods there, repacks them and re-exports them to neighbouring countries. Duty is paid only on the part that is sold inside India.
Don't confuse with
- Dry port: A dry port only clears customs and handles containers on their way to or from seaports. An FTWZ lets goods stay in duty-free storage and be traded from there.
Related concepts
- Multimodal logistics
- Logistics cost
- Logistics Performance Index
- Multimodal logistics park
- Dry port
- Industrial corridor
- Plug-and-play infrastructure
- Cold storage