1. Free trade zones (FTZs) are industrial estates which from enclaves from the national customs territory of a country and are usually situated near sea ports or airports.
2. The entire production in such zones is usually meant for exports.
3. Suitable vast area with infrastructure facilities is selected for such free zones. The normal facilities for manufacturing activities are provided by the government in the FTZs
4. Special concession and incentives are offered to units for promotion of exports. Such incentives and concessions include (i) duty free import of capital goods and equipment, (ii) exemption from customs and other taxes on imported raw materials, (iii) exemption from central excise, (iv) liberal policy for import of technical know how, (v) advance import licenses of raw materials to meet one year requirements.
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