Posted in Operations and Supply Chain Terms, Total Reads: 1841
Definition: Duty Free Zone
A duty free zone is an area where foreign goods can be imported or exported without the imposition of duties like custom duties or excise duties on them. The goods can be kept in this zone waiting for further exportation or use in manufacturing, etc.
Generally when foreign goods are imported or exported, customs duty is imposed depending on the value of the goods or some other factors like size, dimensions, etc. A duty free zone helps to avoid these duties.
But if the goods are released in the local market, then the duties have to be paid as per law.