Free Trade Warehousing Zone (FTWZ)
In today’s global trade landscape, businesses need smart solutions that minimize logistics costs, reduce lead times, and enhance supply chain efficiency. A Free Trade Warehousing Zone (FTWZ) is one such innovative model designed to empower importers, exporters, and international businesses with duty-free storage and operational flexibility.
At AWAT Logistics, we offer specialized FTWZ services that act as a strategic hub for your global supply chain. Whether you are an overseas client looking to stock goods in India without immediate customs clearance or an Indian importer managing high-volume imports, our FTWZ solutions deliver unmatched benefits.
What is FTWZ?
A Free Trade Warehousing Zone (FTWZ) is a designated customs-bonded area created to support the warehousing and distribution of imported and exported goods with special fiscal and regulatory benefits. These zones are considered foreign territories for trade purposes, allowing companies to store goods without paying customs duty or taxes until the goods are cleared for domestic use.
FTWZs are governed under the Special Economic Zone (SEZ) Act and are developed to promote international trade by offering a liberal regulatory environment and world-class infrastructure.
Key Benefits of Using an FTWZ
✅ Duty Deferment
One of the most valuable advantages of FTWZ is that no customs duty or GST is paid until the goods are moved into the domestic market. This allows importers to improve cash flow and delay tax liabilities.
✅ Storage Without Time Limit
Unlike bonded warehouses that may have time constraints, FTWZs allow long-term storage without limits, giving flexibility in managing inventory and sales planning.
✅ Buy in Bulk, Sell in Lots
Importers can bring goods in large volumes, store them in FTWZ, and release them in smaller quantities as per market demand, saving cost and avoiding overstocking.
✅ Re-export Flexibility
Goods stored in FTWZ can be re-exported to other countries without entering the Indian market, eliminating any customs duty liability altogether.
✅ 100% Foreign Direct Investment (FDI) Allowed
International companies can set up warehousing and trading operations inside the FTWZ without the need for a local entity, making it easier to establish a foothold in India.
✅ Value-Added Services (VAS)
While the goods are stored in FTWZ, value-added activities like:
- Labelling
- Repackaging
- Kitting
- Testing
- Inspection
- Assembly
AWAT Logistics – Your Trusted FTWZ Partner
With our deep understanding of customs laws, trade compliance, and global logistics, AWAT Logistics offers end-to-end FTWZ solutions to help businesses unlock the full potential of duty-free warehousing.
Our FTWZ Services Include:
- Import handling and customs documentation
- Duty-free storage of goods
- Inventory tracking and control via WMS
- Repackaging, barcoding, and labelling inside FTWZ
- Re-export and domestic clearance management
- Coordination with SEZ & customs authorities
- Last-mile distribution across India
IDEAL USE CASES FOR FTWZ
FTWZs are particularly beneficial for:
- Global traders wanting to distribute across South Asia from India
- Importers with fluctuating demand who want to manage just-in-time inventory
- Manufacturers sourcing raw materials from overseas
- E-commerce players selling imported goods in India
- OEMs and Distributors managing multiple SKUs across geographies
FTWZ vs CUSTOM BONDED WAREHOUSE
| Feature | FTWZ | Custom Bonded Warehouse |
|---|---|---|
| Duty Payment | Deferred until clearance | Pay upfront at port |
| FDI Allowed | 100% allowed | Limited or regulated |
| Re-export of Goods | Permitted without duty | Not possible |
| VAS Without Duty | Allowed | Attracts duty if value is added |
| Long-Term Storage | Allowed without limit | Often restricted or costly |
| Foreign Entities Allowed | Yes, even without Indian presence | No, requires local registration |
Why Choose AWAT Logistics for FTWZ Services?
✅ Strategic Locations near major ports and industrial hubs
✅ SEZ-compliant operations with professional compliance support
✅ Customs experts for fast clearance and documentation
✅ Flexible storage options for various cargo types
✅ Real-time visibility through digital inventory management systems
✅ Seamless integration with freight forwarding, customs clearance, and distribution
Get Started with FTWZ Today
AWAT Logistics helps global and domestic businesses tap into the strategic advantages of FTWZ with ease. From setting up your operations to full-scale logistics management, we take care of everything, giving you the power to grow, scale, and trade more efficiently.
Ready to make your supply chain smarter with FTWZ?
Let our logistics experts help you design a custom warehousing solution that saves costs, ensures compliance, and enhances flexibility.