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Free trade zones in India are a foreign trade concept adopted to motivate international trade habits that can effectively boost trade volume. FTZ in India offers significant benefits to the electronics industry that involves the export and import of goods such as smartphones, inverters, computers, battery chargers, speakers, base stations, and many others. 

FTZ for Electronics Business 

If you are dealing with electronics export or import to the Indian subcontinent as a distributor, manufacturer, trader, supplier, retailer, or merchant, you must have a clear understanding and grasp of free trade warehousing zones in India. The FTZ or free trade zones in India give a unique opportunity to businesses to transport and move goods or products from one place (country) to another without involving local regulations regarding import-export customs fees, taxes, and other expenses linked to the import and export of goods. 

Exploring the lucrative benefits of using free trade warehousing zones in India are:

• Customs duty and tax delays 
• The long tenure period for storing goods is up to 5 years. 
• Savings earned every week on entry 
• Duty exemption for re-exports 
• Enhanced level of quality control, automated inventory tracking, and full compliance 

In the free trade zone procedure, businesses can follow the manufacturing orders and keep a diligent record of all inventory to see whether the material has been bought in the domestic or international market, separating goods for delaying customs duties payment. You can save more money by reducing the processing fee of merchandise, and thus gain more working capital. 

Irrespective of your business position and stature, as a small company or a large manufacturer exporting or importing electronic products, you can benefit well from foreign or free trade warehousing zones. Unfortunately, many companies have not used free trade zones in India and are ignorant of their storage capacities, management prowess, and handling of compliance for import/export goods to India. 

Using the FTZ channel for electronic goods export to India can reduce overall costs, and customs fee deferral, lessen the bureaucratic regulations, and give an edge over global competition. Among various free trade zones scattered across the world, OnnSynex Ventures Pvt. Ltd. is a greatly reputed and established free trade warehousing zone in India that can be trusted and used liberally for the import and export of electronic materials, products, and numerous other products in and from the country. You can approach us via our official website https://onnsynex.com/. 

SEZ Government Authorized 

Free trade zones are also called Special Economic Zones or SEZs. According to SEZ Rules 2006, laid by the Government Department of Commerce, a SEZ can be built specially for software and hardware electronic goods, which includes IT-enabled services. The proposed SEZ scheme must be of a minimum of 10 hectares or more, with a built-up area of at least one lakh square meters. 

EOU/EHTP Scheme 

You can avail of all the necessary information concerning the country’s current Foreign Trade Policy and Procedures via the government website https://commerce.gov.in/. You can find the relevant details in Chapter 6th of India’s Foreign Trade Policy directed by the Ministry of Commerce and Industry. All the information related to free trade zones in India or SEZ schemes can also be acquired through the website. 

EPCG Scheme 

The Export Promotion Capital Goods Scheme is also called a zero-duty scheme, which is offered to all exporters of electronic goods and products. In this, you can import capital goods meant for pre-production, production, and also post-production at precisely zero percent customs duty fee

This is subject to an export rule obligation that is equivalent to almost six times of customs duty saved on electronic capital products or goods imported under this special EPCG scheme. The obligation is to be fulfilled within 6 years starting from the authorization of the issue date. 

 All the relevant details of this EPCG scheme is made available in the 5th chapter of Foreign Trade Policy and Procedures of India on the official Ministry of Commerce & Industry website mentioned above. 

Exemption Duty & Remission Schemes 

Exemption duty schemes help in arranging duty-free import of electronic inputs needed for export production. The scheme may consist of the below-mentioned points:

• Advance Authorization Scheme
• DFIA or Duty-Free Import Authorization scheme
• A Duty Remission Scheme helps in post-export remission of customs duty on inputs that were used in export production. 
• Duty Remission Schemes contain the Duty Entitlement Passbook Scheme/DEPB and the Duty Drawback Scheme/DBK

All the information related to these exemptions of duty schemes is made available in Chapter 4th of Foreign Trade Policy and Procedures, on the official website – of the Ministry of Commerce and Industry. 

More About Free Trade Zones 

FTZs offer a diverse range of high-tech infrastructural facilities and logistics services to all kinds of businesses. The facilities include a steady power supply, well-built industrial parks, good transportation networks, and readymade factory spaces. 

These infrastructure provisions provide valuable help to various businesses and minimize their setup costs. The provisions also give a conducive environment for production and sundry operations. Free trade zones in India are equipped with specific training facilities and R&D centers that aim to train the workforce to up their skill levels and initiate innovative discoveries. 

The main focus of all free trade zones is to secure or attract FDI or foreign direct investment. Our country has been successfully attracting substantial FDI inflows over the years, particularly in sectors such as textile, information technology, electronics, pharmaceuticals, and automotive industries. The incentives and deals given by the free trade zones, in addition to India’s large domestic market, skilled labor force, and promising economic development make India a breeding ground for investment and the most preferred trading destination for foreign businesses.

Foreign Direct Investment not only ushers in good capital but also facilitates technology transfers and valuable knowledge sharing between the foreign and domestic parties, contributing to the development of Indian electronic industries.

Onnsynex Ventures Pvt. Ltd.

At Onnsynex Ventures Pvt. Ltd. you can expect only the best warehousing facilities. Along with world-class infrastructure and equipment, we have a definitive team for management, for delivering winning IT solutions and meeting all our client’s demands. By providing a dedicated task force, we wish to see that our clients are all 100%  satisfied with our unmatched services at reasonable prices, and quick practical support.