FTWZ vs Bonded Warehouse.
Free Trade Warehousing Zones (FTWZ) surpass bonded warehouses with tax benefits, advanced infrastructure, and integrated solutions for storage and customs clearance. Strategically located, they boost global connectivity, streamline operations, and optimize supply chains, making them ideal for modern logistics.
Inbound Process.
FTWZ
Lesser Documentation Formalities
3
Working
Days
Days
Day 1
Vessel Berthing, IGM Confirmation & Warehouse B/E Filing with Customs
Day 2
Fulfilment of trans-shipment formality completion with Dock Customs, Placement of Trailers & Movement of Laden Container
Day 3
Goods registration, Examination and OOC completion
With streamlined processes and minimal documentation formalities, FTWZ ensures faster clearance and cargo movement, completing operations in just 3 working days. Compared to the delays and complexities of a bonded warehouse, FTWZ offers a seamless experience, reducing transit time and operational hurdles. Optimize your supply chain with FTWZ – where speed and efficiency take priority.
VS
Bonded Warehouse
Tedious Documentation Formalities
5
Working
Days
Days
Day 1
Nothing
Day 2
Vessel Berthing, IGM Confirmation, PNR movement to nominated CFS, Warehouse B/E Filing with Customs
Day 3
Nothing
Day 4
Post-Assessment, Application for Bonding permission & Submission for space certificate from Bond Officer
Day 5
Obtaining Permission from Bond Officer, Execution of Triple Bond Duty, Destuffing Cargo at Bonded Warehouse & Returning of Empty Container to the yard.
Outbound Process.
FTWZ
Lesser Documentation Formalities
2
Working
Day
Day
Day 1
Filing Home Consumption B/E, Customs Assessment, Duty Payment, Obtaining Out of Charge*, Placement of Vehicle, Shifting, Loading and Dispatch of Vehicle**
FTWZ streamlines outbound logistics with minimal documentation, completing the entire process within 2 working days. From customs assessment and duty payment to vehicle dispatch, FTWZ ensures swift operations, saving valuable time and reducing complexity. Compared to the lengthy procedures of bonded warehouses, FTWZ provides an efficient and hassle-free solution for seamless cargo movement.
VS
Bonded Warehouse
Tedious Documentation Formalities
4
Working
Days
Days
Day 1
Submission ex-bonding application
Day 2
Obtaining Permission for ex-bonding, Triple Duty Bond Cancellation & Obtaining CFS and Bond Charges
Day 3
Duty Payment and Interest of Duty (if, exceeds 90 Days of bonding) & Payment of CFS and Bond Charges
Day 4
Obtaining Out of Charge, Placement of Vehicle, Shifting Cargo, Loading & Dispatch of Vehicle***
FTWZ vs Bonded Warehouse.
FTWZ
Bonded Warehouse
Status
SEZ Act Sec 53(2). FTWZ is a Deemed Port
No Deemed Port status.
NFE
FTWZ Units are required to be NFE positive under SEZ Rule 53
No NFE requirement by Bonded Warehouses
Assessment of Duty
The Goods are NOT assessed for any duty since the FTWZ is a Deemed port. A Bill of Entry for WH consumption to be filed with FTWZ Unit to transfer goods from Airport/ Port to FTWZ.
Bill of Entry for Warehousing is filed and assessed to duty before being permitted to move to the Bonded WH.
Multi-Country Consolidation & Easy of EXIM Trade
Consolidation of goods from Multi-Country permitted as per customer's requirement. Hassle-Free procedure for re-export and re-import, unlike standard customs procedure.
Consolidation of goods not Permitted. Re-imports and re-exports go through standard customs approval procedures.
Duty Deferment Bond
A Double-duty bond is not required.
Additional double duty bond required.
Movement from Customs Gateway
Goods are transported from customs gateway to Serama Logistics' FTWZ via transhipment procedure with assessment by customs, which decreases Customs process lead time.
The movement of goods into the bonded warehouse are subject to examination at Gateway Customs.
Holding Goods on
The account of Foreign Supplier / Buyer ownership
Not permitted. Only Indian registered company with valid IEC and GST
Period of Storage
SEZ Rule 37 allows the Unit Holder to keep the goods in the FTWZ till the validity of the Unit Holder. The goods in the FTWZ not assessed for duty.
One Year, further extension allowed subject to approval from the Chief Commissioner of Customs.
Interest on Duty
Interest on Duty during storage not applicable
Beyond 90 Day, interest is levied.
Customs Set Up
Dedicated customs setup available within the FTWZ
Dedicated customs setup could be done subject to approval from the Customs office.
Customs procedure for Removal of Goods
Hassle-Free procedure for Removal of goods from FTWZ to DTA. Customs processing is done within the FTWZ zone
All customs processing with the customs house located away from the bonded facility with multi authorities involvement (AO/EO/PO/Bond Officer)
Compliance with Allied Acts
The payment of duty and compliance with allied acts is only applicable when the goods move out of FTWZ into DTA.
Bond permission after production of necessary NOC related to Allied Acts. Payment of duty at the time of moving out of goods with applicable interest upon production of relevant import license or NOC from the respective authority.
Regional Trade Hubs
This facility can be a regional hub for the vendor. Permits operations of the VMI model with Foreign Currency models
Cannot be used as a regional hub since no facilities are available for the export of goods and only INR transactions are permitted within a bonded warehouse.
Value-added Services (VAS)
Can carry out Value-added Services as provided in SEZ Rule 18 (5)
Value-added Services are subject to Customs permission in advance of any such activity.
The currency of Payment/Trading
All Payments in Free Foreign Exchange including INR
All payments in INR only.
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