Synergy Express Logistics Pvt Ltd is an ISO 9001-2008 certified company that provides global logistics services. It is a WCA Gold Medallion member located in New Delhi, India. The document discusses Free Trade Warehousing Zones (FTWZ) in India, which allow import, export, and re-export of goods without duties and taxes. Goods can be stored in FTWZ for up to two years before duties must be paid. FTWZ provide benefits like tax exemptions, quicker clearances, and reduced costs.

1. (An ISO 9001-2008 certified company)
L 144 2nd FLOOR, STREET NO 5B,, MAHIPALPUR, NEW DELHI-10037, INDIA.
PH: +91 11 42198550-552, FAX 42198553, Email ; info@synergy-express,com, Web:
www.synergy-express.com
DELIVERING THE WORLD
SYNERGY EXPRESS LOGISTICS PVT LTD
WCA GOLD MEDALION MEMBER
GLOBAL LOGISTICS SERVICE PROVIDER

2. Free Trade Warehousing Zone (FTWZ)
• Free Trade Warehousing Zone allows you to import, export and re-export goods
from India without the burden of duties and taxes that are otherwise levied on
your goods. FTWZ offers customized facilities related to warehousing which help
you add value before the shipment is organized. These zones have been
strategically located, networked and laden with every facility to offer you a clear
time-and-cost advantage. The benefits that these zones offer include quicker
regulatory clearances, tax and duty incentives, flexibility, visibility and reduced
working capital expenses.
These zones will not only allow us to bring a unique end-to-end solution for our
clients, but will also create partnership opportunities with Technology, Supply-
Chain, and International Operations companies. FTWZ is conveniently located for
multi-modal hinterland or port connectivity facilitating the movement of goods in
and out of India. It lets you leverage India’s cost and skill arbitrage, and empowers
you with its strategic geographical position. It gives you an advantageous position
when you consider India’s position in terms of trade as compared to other players
in the Asian sub-continent.

3. Overview
•
The scheme envisages duty free import of all goods (except prohibited items, arms and
ammunitions, hazardous wastes and SCOMET items) for warehousing. As far as bond
towards customs duty on import is concerned, the units would be subject to similar
provisions as are applicable to units in SEZs.
•
These goods shall also be permitted to be sold in the DTA on payment of customs duties as
applicable on the data of such sale. Payment of duty will become due only when goods are
sold/delivered to DTA and no interest will be charged as in the case of bonded warehouse.
•
Packing or re-packing with processing and labelling as per customer or marketing
requirements could be undertaken within the FTWZ.
•
The maximum period that goods shall be permitted to be warehoused within the FTWZ will
be two years, after which they shall necessarily have to be re-exported or sold in the DTA.
On expiry of the two-year period, customs duties as applicable would automatically
become due unless the goods are re-exported within such grace period, not exceeding
three months, as may be permitted.

4. Overview
• What was once the preserve of Dubai and Singapore in this region, is now
available in Three locations in India - Panvel near Mumbai ,Khurja, Uttar
Pradesh, near New Delhi and Siri City Chennai Deemed foreign territory,
FTWZs have their own 24 X 7 customs clearance and offer a rich slew of
benefits and advantages for imports, exports and re-exports. Replete with
customized warehousing and equipped to deliver a host of value
optimization services, they offer unprecedented value that many MNCs
and Indian companies are availing. Moreover, with carefully chosen
strategic locations, The FTWZ near Mumbai, the very first in India, sprawls
165 acres and is located 24 kms from Jawaharlal Nehru Port Trust and the
one in Khurja near New Delhi is 135 acres and is co located with an
Industrial & Distribution hub, and Siri City Chennai is located 65 Kms from
Chennai Port .Clients will vouch for the facilities which offer an amazing
range of benefits that apply uniquely to various industry groups Using
state of the art equipment, and managed efficiently with appropriate IT
solutions. Allowing clients to leverage India's cost and skill arbitrage, these
hubs offer unparalleled business advantages in this part of the world.

5. Unique Benefits for Imports
• Flexibility towards end distribution in India
• Duty deferment benefits (freeing up working
capital & increasing sales)
• Quality control capability prior to duty-payment
• Exemption on VAT & CST on imports through FTWZ
• Hassle-free re-export regulatory /duty implications
• Reduced buffer stocks, Service Tax exemption on
services availed; including transportation inside
India
• Lowered product costs

6. Unique Benefits for Exports
• Foreign exchange transaction capability
• Products from India entering the FTWZ are
treated as deemed export providing immediate
benefits to suppliers
• Local Tax Exemption (e.g. CST, Sales Tax, Excise &
VAT) on all activities conducted inside the FTWZ
• Export quotas able to be met for companies
exporting into FTWZ
• Increased efficiency through lowered reverse
logistics through quality control before dispatch
from India

7. Unique Benefits for Re-Exports
• Foreign exchange transactions capability
• Increasing supply chain efficiencies (forward & reverse) while
enhancing capital cash flow
• Service tax exemption on all activities conducted inside the FTWZ
including rental & labour
• Exemption from custom and stamp duty on products imported into
FTWZ; meant for re-export out of India
• Income tax exemption on profit where applicable
• Hassle-free re-export process
• Permission of 100% FDI for the set-up of units by the unit holder of
the FTWZ
• Ability to leverage India's cost, skill & geographic positioning
advantage as a hub for regional/global distribution post Value
Optimising activities

8. FAQ
• What is a Free Trade and Warehousing Zone (FTWZ)
• Free Trade and Warehousing Zone is a Special Economic Zone wherein mainly trading and warehousing and other
activities related thereto are carried on. It is a deemed foreign territory within the geography of India for the
purpose of tariff and trade.
• What is the governing Act and Rule for FTWZ
• The Special Economic Zones Act, 2005 and the Special Economic Zones Rules, 2006 are the legal framework for
FTWZ. Instructions are also issued by the Ministry of Commerce & Industries from time to time to clarify various
operational aspects of FTWZ.
• What are the activities allowed inside the FTWZ
• Following activities are allowed in the FTWZ: Warehousing of goods on behalf of foreign or domestic clients
• Trading with or without labelling
• Packaging and repacking
• Re-sale, re-invoice, or re-export of goods
• Assembly of complete and semi-knockdown goods
• Kitting and various value optimization services on the goods/cargo
• In what ways companies can operate through FTWZ
• There are two ways in which companies can operate through FTWZ:
• Trading Unit: Company can become a Unit in the FTWZ for the purpose of trading, warehousing and other related
activities called authorised operations.
•
Service Unit: Company can avail the services of Arshiya Supply Chain Management Pvt. Ltd. (ASCM), which is a
Unit in the FTWZ, for trading, warehousing and other related activities called authorised operations. ASCM will
provide various value optimization services to its clients.

9. FAQ
• What is the nature of authorised operations in FTWZ
• In an FTWZ the authorised operations comprise of trading, warehousing, packing, labelling, lashing, shrink
wrapping, strapping, palletization, bottling, clubbing, consolidation, quality checking, testing, kitting, combination
packing, handling, storage of empty containers, etc. as may be authorised by the Unit Approval Committee in
Letter of Approval.
• What is a Letter of Approval (LOA)
• Letter of Approval is the permission granted by the Unit Approval Committee to an entrepreneur to set up a unit
in the FTWZ to carry on authorised operations. LOA is valid for five years from the date of commencement of the
activity. It is extendable to further five years.
• Who can become a Unit in FTWZ
• Companies who are Trading entities, Importers & Exporters, 3PLs, CHAs, Freight Forwarders, Shipping Lines,
Manufacturers, etc. can become Units in FTWZ. The Units are required to execute a Bond-cum-Legal Undertaking
for import and warehousing of goods inside the FTWZ.
• What kind of export benefit is available in FTWZ
• Export entitlement is available for supply of goods from Domestic Tariff Area (DTA) to FTWZ for authorised
operations. The Unit or Developer can claim drawback or Duty Entitlement Pass Book in respect of goods procured
from DTA. Alternatively, the same can be claimed by the DTA supplier on the basis of a disclaimer from the Unit or
Developer.
• Whether service tax is exempt in an FTWZ
• Inbound taxable services as well as those performed inside the FTWZ for use in authorised operations are exempt
from service tax. Similarly, taxable services in relation to transportation of goods from Port to FTWZ or from one
FTWZ to another FTWZ would also be exempt.

10. FAQ
• Whether Customs duty is exempt for import into FTWZ
• Customs duty is exempt when goods are imported into FTWZ for authorised
operations.
• At what stage Customs duty is payable in FTWZ
• Customs duty becomes payable at the time of clearance of goods into DTA. In case
of piecemeal clearance, the customs duty would be payable on such piecemeal
quantity cleared into DTA and not on the full quantity received into FTWZ.
Therefore, the customs duty can be deferred by importing the goods into FTWZ.
• How long goods can be stored in FTWZ without payment of Customs duty
• Imported goods can be stored in FTWZ for up to 2 years without payment of
Customs duty. FTWZ is the only scheme in India which allows deferment of
Customs duty without incurring interest or penalty
• How is the treatment for supply of goods from DTA to FTWZ
• Supply of goods from DTA to FTWZ is export as per SEZ Act. Hence, benefits
available for export out of India are also available for supplies from DTA to
FTWZ..............
•

12. SYNERGY EXPRESS LOGISTICS PVT LTD
L 144 2nd FLOOR, STREET NO 5B,, MAHIPALPUR, NEW DELHI-10037, INDIA.
PH: +91 11 42198551,552, FAX 42198553, Email ; info@synergy-express.com,
Web: www.synergy-express.com
SYNERGY EXPRESS
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