Strategic Special Economic Zone

Free Trade Warehousing Zone (FTWZ) Overview

A deemed foreign territory within India offering duty deferral, tax exemptions, and streamlined global trade operations.

Customs Duty Deferral

for Eligible FTWZ Operations

Facilitated Re-Export

with Applicable Customs & Tax Benefits

SEZ Act

Full Statutory Compliance

Chennai

Strategic Port Proximity

Understanding This FTWZ Advantage

A Free Trade Warehousing Zone (FTWZ) is a designated Special Economic Zone (SEZ) category in India specifically authorized for international trading, warehousing, value-addition, and transshipment. By operating inside an FTWZ with OSJ Global Connect, businesses can hold imported inventory on Indian soil without paying customs duties until the goods are actually cleared into the domestic market (DTA), or re-export them without ever incurring Indian duties or GST.

Core Benefits & Strategic Value

Cash Flow & Duty Deferral

Zero customs duty and GST payable at the time of entry into the FTWZ. Duties are paid only in installments when goods enter the domestic tariff area (DTA).

Duty-Free Re-Export & Transshipment

Goods imported from abroad can be consolidated, repacked, or value-added inside the zone and re-exported globally without paying any Indian customs duties.

Foreign Entity Ownership (No Indian GST/PAN needed)

Overseas vendors can hold title to inventory inside the Indian FTWZ and sell directly to Indian buyers in foreign currency without establishing a local subsidiary.

Permitted Value-Added Activities

Statutory authorization to conduct packing, repacking, labeling, kitting, light assembly, testing, inspection, and rework inside the facility.

Faster Customs Turnaround

Simplified documentation via SEZ online portal with dedicated on-site customs officers ensuring round-the-clock clearance.

No Expiry of Holding Period

Flexible storage duration compared to standard public bonded warehouses, allowing strategic buffering against global supply volatility.

Regulatory & Taxation Benefits Under SEZ Act

  • 100% exemption from basic customs duty (BCD), IGST, and anti-dumping duties while cargo resides in the zone
  • Supplies from Indian domestic manufacturers into the FTWZ qualify as physical exports (claiming RoDTEP/Duty Drawback)
  • Transactions within the FTWZ or between two foreign companies in the zone are completely exempt from GST
  • Transactions can be invoiced in freely convertible foreign currencies (USD, EUR, GBP) as well as INR
  • Authorized operations under the Special Economic Zones Act 2005

Operational Applications

  • Strategic holding buffer for high-value automotive, electronics, and engineering components
  • Hub-and-spoke redistribution center for South and Southeast Asian regional markets
  • Consolidation of multi-country vendor goods into single container export consignments
  • Reverse logistics, warranty repair, and global return-for-rework fulfillment center