Units within FTZ are allowed to export, import and re-export products without the burden of taxes, duties and levies that a business would otherwise have been bound by. FTZ allows business to locate stock in close proximity to their Indian customers reducing buffer stocks and improving turnaround time. This increases forward and reverse supply-chain efficiencies.
Further, FTZ units are permitted to trade goods with or without labeling, assembly of complete knocked down and semi knocked kits, packaging or repackaging, re-sell, re-invoice or re-export of imported goods,.
In addition to the benefits of SEZ, FTZ units can avail the following benefits:
Hassle-free business environment in terms of local laws & regulatory compliance.
Goods can be stored up to 2 years by deferring payment of duties thus freeing up working capital. There is no interest levied on deferred duty.
No Import/Export duties to be paid in case the goods are imported from one country and re-exported to another with or without value addition.
24 / 7 Customs clearance enhancing speed and efficiency of distribution of spares and parts which is very critical in Aircraft repairs and maintenance
Value added activities like labeling, assembly of complete knocked down and semi knocked kits, packaging or repackaging, re-sell, re-invoice or re-export of imported goods, setting up of office in the premises etc. are permitted with little/no interference from customs personnel.
Opportunities at GIFTZ
GIFTZ entails re-export re-sale and re-invoice of goods without any restriction. The goods can also be traded in Domestic Tariff Area (DTA)/ local sales by payment of custom duties as applicable at the time of sale.
Value addition restricted to packaging and labelling-Packing or re-packing without processing and labelling as per customer or marketing requirements can be undertaken under GIFTZ.
Assembly of complete knockdown and semi knockdown kits.
To foster and boost exports, GMR Hyderabad International Airport Limited as a company and developer established airport based multi-product SEZ. Currently we have dedicated 20 acres as GIFTZ to complement supply chain distribution, warehousing, storage, value addition and packaging and present value offering to all major international clients. This is the only Airport-based GIFTZ in India. The fact that the GIFTZ is inside the airport makes it unique which will bring down the transportation costs and reduce the turnaround time for movement of goods.
Primary benefits of exclusive airport based GIFTZ at RGIA
The GIFTZ will allow companies to leverage its state-of the- art infrastructure warehouses, not only for Indian distribution covering international end users as well. It will provide an opportunity of seamless international distribution by re export of commodities with facilities of sorting grading, value added services etc.
The facilities provided at GIFTZ would help logistics companies to warehouse their commodities for both short and long term without impact on import duty.