Posted in Finance, Accounting and Economics Terms, Total Reads: 189
Definition: Free Trade Zone
Free trade zone is a special case of Special economic zone. These are the geographic areas where goods can be freely brought in, manufactured, assembled and re-exported without any intervention from custom department. Although if you move goods from Free Trade Areas to areas where customers are located, to sell your goods, they are subjected to all kind of custom duties. It is generally made to encourage production in home country, and give a boost to manufacturing industry.
Free Trade Areas generally are made near major seaports, international airports, and other national frontiers which can provide advantage to trade. It is a region which is formed with consultation from group of countries. They can also be defined as labor intensive manufacturing centers where raw material is imported and finished goods exported
Example- Shenghai Free Trade Zone established in 2013