Free Trade Warehousing Zone

"Benefits of the Free Trade Warehousing Zone (FTWZ) over Bonded Warehouse"

FTWZ BONDED WAREHOUSE
Port Status "SEZ Act Sec 53(2). FTWZ is a Deemed Port" No Deemed Port status.
NFE "FTWZ Units are required to be NFE positive under SEZ Rule 53" "No NFE requirement by Bonded Warehouses."
Assessment of Duty "Since the FTWZ is a Deemed Port the goods are NOT assessed for Duty. A Bill of Entry for home consumption is filed with FTWZ Unit for transfer of goods from Airport/ Seaport to FTWZ." "Bill of Entry for Warehousing is filed and assessed for Duty before being permitted to move to the Bonded Warehouses."
Multi-Country Consolidation "Consolidation of goods from Multi-Country permitted as per customer’s requirement. "Consolidation of goods not Permitted
Duty Deferment Bond No requirement for a double duty bond Additional double duty bond required
"Movement from Customs Gateway" "Goods are transported from customs gateway to Minerva’s FTWZ via transshipment procedure without assessment by Customs in turn decreasing Customs process lead time" "Movement of goods into the bonded warehouse are subject to assessment at Gateway Customs"
Value Added Services (VAS) Can carry out Value Added Services as provided for SEZ Rule 18 (5) "Value Added Services are permitted, subject to Customs permission in advance of any such activities"
"Holding Goods on Account of Foreign Supplier / Buyer" Permitted under SEZ Rule 18 (5) Not permitted
Restricted Goods Imports Permissible to enter the FTWZ. Goods can enter Bonded Warehouse pending Production of import license
Prohibited Goods Imports Permissible to enter the FTWZ with the Approval of the BOA Not Permissible
Period of Storage "SEZ Rule 37 permits the goods to be kept until the Validity of the Unit Holder. The goods in the FTWZ are not assessed for Duty." "One Year, further extension allowed subject to approval from Chief Commissioner of Customs"
Interest on Duty Interest on Duty not applicable Beyond 90 Days, interest is levied.
Exemption from SAD Exemption of 4% SAD against CST or VAT applicable SAD benefit applicable as per Customs notifications for pre-packed goods only.
Customs Set Up Dedicated customs setup available within the FTWZ 24x7x365 "Dedicated customs setup could be done subject to approval from Customs office"
"Customs procedure for Removal of Goods" "Hassle-Free procedure for removal of goods from FTWZ to DTA. Customs processing done within the FTWZ zone." "All customs processing with the customs house located away from the bonded facility"
Compliance of Allied Acts "Payment of duty and compliance of allied acts, only when the goods move out of FTWZ into DTA" "Payment of duty at the time of removal of goods along with applicable interest & upon production of applicable import license"
Easy of EXIM Trade "Hassle-Free Procedure for re-exports and re-import unlike standard customs procedure." Re-imports and re-exports go through standard customs approval procedures
Regional Trade Hubs "Possibility of using this facility as a regional hub. Permits operations of VMI model with Foreign Currency models" "Cannot be used as a regional hub since, no facilities are available for export of goods and only INR transactions are permitted within a bonded warehouse."
Foreign Exchange All Payments in Free Foreign Exchange All payments in INR only.

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