A "free zone" (also known as free trade zone or foreign trade zone) refers to a designated geographic area within a country where goods can be imported, stored, processed, manufactured, and re-exported without being subjected to customs duties or other trade barriers. Free zones are established with the aim of promoting international trade and attracting foreign investment by providing various incentives and benefits to businesses.
Within a free zone, companies can enjoy advantages such as exemption or reduction of customs duties, simplified customs procedures, streamlined regulations, tax incentives, and access to specialized infrastructure or services. These zones are usually located near ports, airports, or major transportation hubs, making it easier to import and export goods.
Free zones are typically governed by their own specific set of rules and regulations, often differing from those of the country they are located in. They may have their own independent customs authorities and operate under more liberal trade policies compared to the rest of the country.
What is a “free zone” in terms of international trade?
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shorten answer
A "free zone" is a designated area where businesses can import, store, process, and export goods without paying customs duties or facing trade barriers. It aims to promote international trade and attract foreign investment by offering incentives such as reduced taxes, simplified customs procedures, and access to specialized infrastructure. Free zones have their own rules and regulations that differ from the rest of the country.
use simpler terms
A "free zone" is an area where businesses can bring in, keep, process, and send out goods without paying taxes or facing trade barriers. It helps international trade and attracts foreign investments by offering special benefits like reduced taxes, easier customs processes, and access to special facilities. Free zones have their own rules that are different from the rest of the country.
3 answers