Revised kyoto convention chapter 2 free zones of specific annex d. Tradebased money laundering in freetrade zones across the. Introduction 159 free zones in the dominican republic 162 performance and the challenge of adjustment 166 the policy response 172 current situation and conclusions 175. Specific economic and free zones benefits include i 100% foreign ownership, ii tax exemption iii lower quota requirements to hire omani national employees and iv zero customs duties. A free zone, also known as a free trade zone, is a defined geographical area within each emirate. Free zones are defined as fencedin areas in which special regulatory treatment exists for the operating users in order to promote exports of goods and services. The fact that no duties or taxes are levied in the free zone helps to promote trade, especially the import and export of all kinds of goods. The duty free zones placed in maritime areas also permit valueadded processing and manufacturing for eu external markets. This list gives the address and phone number of the contact person for each ftz project. Customs and border protection cbp supervision that are generally considered outside cbp territory upon activation. Progress, emerging challenges, and future directions.
Our partners and investors can obtain a hardcopy of the official rules and regulations from our corporate office. Enforcement within free trade zones singapore customs conducts regular and surprise inspections in the free trade zones ftzs to enforce against illicit trade and customs offences such as smuggling. The impact of chinas new free trade zone world economic forum. When the goods are stored in a free trade zone, no import declaration has to be lodged. Structural transformation through free trade zones. Free trade zone in nigeria benefits of free trade zones in. Free trade zones in oman at the moment mainl y three ftz are existing in oman. Siwei cheng, former national peoples congress vice chairman, proposes that china is ready to set up a reform pilot for the transformation from bonded zones to free trade zones. Feb 24, 2015 the world economic forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas.
Large manufacturing and trading companies are afforded the opportunity to relocate their entire production line to these free zones, thereby guaranteeing considerable savings on the transport and export of goods to other countries. Sun xuchung tianjin economic and development area teda as well as the policy research bureau and the german office of teda for their information and material support. Free trade zones ftzs which are designed to both facilitate international trade and to promote economic development of the region in which they are located. The challenges are many but the rewards can be high. A guide to chinas free trade zones fuller landau llp. Things about singapore companies in free trade zones and freeport. Money laundering vulnerabilities of free trade zones. Located in or near cbp ports of entry, they are the united states version of what are known internationally as freetrade zones. Chapter 7 when trade preferences and tax breaks are no longer enough.
Pdf a comparative analysis of free trade zones researchgate. Registering your company in singapores free trade zones. Trade in counterfeit goods and free trade zones indicam. The commercial banks continued to reject files sent to them for paar processing based on the reason that documents are predating the form m and the pro forma invoice.
A free zone may also exist as the result of a mutual agreement between several countries to create a customsfree zone in a designated area. They stimulate economic growth and play a central role in business for many countries and leading manufacturers. China and djibouti open free trade zone in africa cnbc. This act may be cited as the trinidad and tobago free zones act. Although the general concept of a free trade zone is uniform in nature, one encounters a number of different types of free trade zones in different countries. The nigerian export processing zones act 1992 decree no. Free trade zone benefits include the elimination of importexport duties, the deferral of customs duties, lower quotabased tariffs and lower duty payments, all of which save businesses money. Both local and foreign companies are required to comply with the free trade zones act. Some of the free zones are more suitable to a particular kind of industry whereas others are more general.
Positive economic impact of a free trade zone in the. They vary according to national characteristics and the goals set for them by national governments. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to the prevailing. Goods of any description, except those specifically prohibited by law, may be brought into a free trade zone, be removed from the free trade zone, destroyed, or sent into customs territory or into another free.
Free trade zonespecial customs zone world customs organization. The shanghai pilot free trade zone what has the impact been for foreign. For references to the above ordersseethe current edition of the consolidated index of acts and subsidiary legislation. A free trade zone is a geographical area within a country and can be designated or located anywhere within a country. There are many terms for economic zones, such as special economic zone, export processing zone epz, sciencebased park, free trade zone, and so on. It was announced in the foreign trade policy 200409 to set up free trade and warehousing zones ftwz to create trade related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency. While the latest surve y co nducted in late 2006 by. Free economic zones, free trade zones, structural transformation, services sector liberalization, shanghai pilot free trade zone 1. Free trade zones in germany are special areas within the customs territory of the country.
Free trade zones are usually located around major seaports or international airports and the nigerian government through the nigeria export processing zones authority the authority has so far licensed about 33 free trade zones located in different parts of the country. Interpretation on china shanghai pilot free trade zone milestones of cspftzs establishment december 2003 mr. Part ii operations permitted within free trade zone. They are usually located in areas with geographic trade advantages. No duties are imposed on goods imported and exported from the free zone oman free trade zone companies are allowed to trade within oman without a local agent. These free trade areas are treated as being outside the. Freetrade zone, also called foreigntrade zone, formerly free port, an area within which goods may be landed, handled, manufactured or reconfigured, and reexported without the intervention of the customs authorities. A comparison the nansha new area explained guangdong free trade zone. Fz and sez companies may be 100% foreign owned there are no minimum share capital requirements for oman free zones exemption on corporate taxes.
Free trade zones as part of the uks post brexit international trade strategy 2. If assistance is needed or if your contact information has changed, please. Incorporated as a notforprofit foundation in 1971, and headquartered in geneva, switzerland, the forum is tied to no political, partisan or national interests. A businessperson can choose from 17 free zones in nigeria, which are. Free trade area and customs union both deal with tariffs and trading. The organizations for economic cooperation and development oecd notes free zones typically fall into one of four categories. Trinidad and tobago free zones act an act to provide for the establishment of free zones in trinidad and tobago and for matters incidental thereto. Free zones offer more convenient and flexible business climate in order to increase trade volume and export for some industrial and commercial activities as compared to the other parts. Oecd defines free trade zones as zones typically located near seaports or airports that offer exemptions from national import and. It presents the evolution of the ftzs and the international legal framework in which they operate, the reasons for establishing such zones and the benefits they offer businesses, and, finally, the role these zones play in fuelling trade in counterfeit and pirated goods. A year of reforms how to restructure an underperforming business in china the shanghai and guangdong free trade zones. Things about singapore companies in free trade zones and.
The world economic forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas. Trade based money laundering in free trade zones across the worldin the caribbean analysis of select case studies on trade based money laundering in trade free zones from the caribbean and south america, and how this can be counteracted. Free trade zones in germany are established and operated under the provisions of the commercial law in germany and eu laws. These free trade zones are opened to both domestic and foreign activities. A freetrade zone ftz is a class of special economic zone. The union customs code the customs union applicable within the eu permits the creation of ftzs. Before now, sometimes around the year 2015, i had some ugly experience with commercial banks in nigeria handling documents relating to free zone shipment for my clients. A free trade zone ftz is a class of special economic zone. Free trade zone ftz and port hinterland development. Freetrade zones are usually located around major seaports or international airports and the nigerian government through the nigeria export processing zones authority the authority has so far licensed about 33 free trade zones located in different parts of the country. The space in the zone is limited however, originally 4 bonded zones where recently expanded.
At the same time, the number and size of free trade zones ftzs or export processing zones. Free trade zone, an area within which goods may be landed, handled, manufactured or reconfigured, and reexported without the intervention of the customs authorities. A free trade area is concerned with removing tariffs, as well as the measures that are applied to member countries as they trade with each other. Waigaoqiao free trade zone and waigaoqiao free trade logistics park. Oman industrial free trade zones healy consultants. Ftwz free trade and warehousing zones is a policy of the government of india goi. A free trade zone is any area in a country where goods may be importedexported without. They are usually located in areas with geographic trade. Goods can remain in free zones for an unlimited period. Wco presentation on special customs zonesfree zones. In this act approved activity means any activity specified in the first. Wco presentation on special customs zones free zones. This study examines the potential for the misuse of free trade zones ftzs for trade in counterfeit and pirated goods.
Free trade zones are central to the integrated global economy. Foreign trade zones foreign trade zones ftzs are sites in or near a u. Epzs, seen as a specific kind of free trade zone ftz for. Note on subsidiary legislation the following orders, viz. Singapore has 10 ftzs in five geographical areas operated by three ftz authorities. An entrepreneur can choose the free trade zone in nigeria in which he wishes to incorporate his company according to the services provided in the free zone. Goods placed inside these areas are free of import duties, vat and other import charges. If the contact person is not an employee of the grantee, the name of the grantee organization is also given. Arshiya international will be developing three more free trade and warehousing zones in. Foreign trade zones california chamber of commerce.
Goods can be brought into a zone without formal customs entry or without incurring. Trinidad and tobago free zones customs and excise division. In addition to free trade zone, some of the other common terms for these areas include special economic zones, foreign trade zones, and export processing zones. The effect of the designation is that import duties on the merchandise are deferred until the items are actually shipped to a buyer within the u. Tradebased money laundering in freetrade zones across the worldin the caribbean analysis of select case studies on tradebased money laundering in trade freezones from the caribbean and south america, and how this can be counteracted.
Introduction there are many terms for economic zones, such as special economic zone, export processing zone epz, sciencebased park. These ftzs are established to facilitate entrepot trade. Oman has three free trade zones ftz and two special economic zones sez. Arshiya international will be developing three more free trade and warehousing zones in central, south and east of india. Free trade zones, also known as foreign trade zones are specific geographic areas designated for storing imported goods. The relevance of ftzs continues to grow as globalization defines economic progress. Role of free trade zones and free ports in the transshipment and transit of counterfeit goods print page. Now the zone covers 120 square kilometers and as for now is composed of seven existing bonded zones image 1. Get access to the guidelines that govern all partnerships and investments in the lagos free trade zone. Interregional forum on special customs zones free zones for europe and ap regions kazakhstan, in may 2019 relevant wco instrumentstools and documents. Pdf during the past few decades, free trade zones ftz have become a growing phenomenon as well as an important element of world. Free trade area overview, advantages and disadvantages. The enlargement of the european union and the falling tariffs has diminished the effectiveness and utility of the free trade zones in germany.
Free trade zones are generally organized around major seaports, international airports, and. Free trade zones can play an important role in helping the nation to meet these key objectives. Many countries have set up free trade zones ftzs to boost business activity and reap the. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to the prevailing customs duties. Introduction there are many terms for economic zones, such as special economic zone, export processing zone epz, sciencebased park, free trade zone, and so on. The international convention on the simplification and harmonization of customs procedures revised kyoto. The move toward free trade zones i1 quickly survey some of the main results that seem to be relevant to the current problem of regionalism in world trade.
Cochin special economic zone is a special economic zone in cochin, in the state of kerala in southwest india, set up for export oriented ventures. It is a geographic area where goods may be landed, stored, handled, manufactured, or reconfigured and reexported under specific customs regulation and generally not subject to customs duty. The area enables users to operate without paying several types of tax. The impact of chinas new free trade zone world economic. The fias report 2008 identifies the following types of zones pp. Free trade zones eliminate many of the barriers to trade that increase prices for consumers and businesses. A guide to chinas free trade zones online resources on emerging asia issues and 4 special editions per year. In theory, the dms of the free zone are expected to issue a set of transit documents that would harmonise the form m and the pfi. Tradebased money laundering in freetrade zones across. Customs port of entry where foreign and domestic merchandise is generally considered to be in international trade. The challenge of adjustment in the dominican republics free zones 159.
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