Community Information

Updating

Similarities and differences between FTZ free trade area and bonded warehouse


Similarities and differences between FTZ free trade area and bonded warehouse
A free trade zone (FTZ), also known as a free zone, is a state-defined free zone that foreign goods can bring, handle, processing, splitting, packaging, processing and processing without import and export tax.
 
Bonded warehouse is a warehouse with its own customs regime. Goods sent from abroad to this warehouse have not been considered as imported into the host country, and because the goods entering the bonded warehouse are not considered as entering Vietnam's customs territory, they are not subject to import tax. as well as other taxes and fees.
 
So, what are the differences between the free trade area and the bonded warehouse? Let's find out about this problem with Lec Group below!
 
 
Free trade zones (FTZs)
 
Free trade area (FTZ) is a special economic area. This is the geographical area where goods can be brought, processed, processed, split, packed, processed or processed according to specific customs regulations. Free trade zones are usually organized around major seaports, international airports, and national borders - areas with many commercial advantages.
 
Under FTZs' regulations, import and export duties are not required for foreign goods unless and until it enters the territory for domestic consumption. At that time, importers generally have the option of paying taxes at the level of foreign raw materials or finished products.
 
Some of the salient advantages of using FTZs include:
  • In FTZs, goods are not subject to import and export duties. Goods are only taxable when transferred to the area of ​​domestic consumer goods.
  • Export tax exemption when exporting goods from FTZs.
  • Improve compliance, track inventory and control quality.
  • Goods may be stored in FTZs indefinitely, whether or not subject to tax.

What are the similarities and differences between bonded warehouses and FTZs?
  • Variety: Goods in and out are under the control of the customs force.
  • Other: Free trade area is usually a large area, which consists of many businesses operating with different functions while the bonded department has a more limited area and is only owned by one enterprise property.

 



Comments


Contact

Việt Nam Office

LEC Group

Tel: 0254. 3897 789

Hotline: (+84) 909 455 136 & (+84) 899 788 136.

Email: info@lecvietnam.com

Head office: Road 4, Phu My 1 Industrial Zone, Phu My ward, Phu My Town, Ba Ria - Vung Tau, Vietnam

HCMC RO: The Galleria Metro 6 Building, 59 Hanoi Highway, Thao Dien Ward, District 2, Ho Chi Minh City

Northern Branch: Phuc Son Port, Dyke Road, Kim Luong, Kim Thanh, Hai Duong, Vietnam

Hanoi RO: C5 D'Capitale Vinhomes, 119 Tran Duy Hung St, Trung Hoa Ward, Cau Giay District, Hanoi, Vietnam
 
Central Branch: Chan May Port, Binh An Hamlet, Loc Vinh Commune, Phu Loc District, Thua Thien Hue Province, Vietnam
 
Danang RO: Road 3, Lien Chieu I.P., Hoa Hiep Bac Ward, Lien Chieu Dist, Danang, Vietnam

Indonesia Office

Mr. Richard Seth

LEC’s Representative in Indonesia
Hotline: (+62) 21- 30053614 & (+62) 815 9212190
Email: richardseth@lecvietnam.com
Address: PT Indo Globex Worldwide , Axa Tower 45th Floor , Jl.Dr Satrio Kav 18, Jakarta Selatan 12940 Indonesia.

Singapore Office

Mr. Mike Raj

Đại diện của LEC tại Singapore
Hotline: (+00) 65 9018 4988.
Email: mike@lecvietnam.com
Địa chỉ: 6 Raffles Quay, Singapore 048580

 
Nhắn Tin
‎ ‎ Hotline Logistics - 0901 388 136
Hotline Năng Lượng - 0899 788 136