Free Trade Zone

What is a Free Trade Zone?

A free trade zone is a specified area within a country jurisdiction. In this area, goods may be landed, stored, handled, manufactured or re-configured and re-exported without being subject to any customs duties. However, if the goods are moved from the free trade zone into the country they have landed, customs duties will apply to them.

Free trade zones are usually located around the major seaports and international airports. And the key reason for creating the zone is to remove hindrances to trade.

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