Study Guide
6. Depots and Warehouses
6.3. Free Zones
As part of government policies to develop a country’s exports and international trade in general, some customs administrations grant relief from import duties and taxes for goods imported into locations that are generally regarded, at least as far as duties and taxes are concerned, as being outside the “Customs territory”. These locations are referred to as free zones, but may also be referred to as “free port”, “free warehouse”, or “foreign trade zone”. Goods imported into a free zone are generally not subject to the usual customs controls.
Imported goods that enter the customs territory for home consumption from a free zone, and which have not been processed there, are liable to import duties and taxes as if they had been imported directly from overseas. Special assessment rules, set out in national legislation, are applicable to imported goods that have been processed in the free zone. They also apply when the goods utilized are of national origin or have been imported against payment of import duties and taxes and granted exemption from or repayment of duties and taxes when they were introduced into the free zone.
|
Note: Commercial free zones and industrial free zones In many customs territories, a distinction is made between “commercial” and “industrial” free zones.
|