In a series of articles to be published in subsequent issues
In discussions regarding the planning of logistics center network construction, an interesting thread is often overlooked: the possibility of using free trade zones as an organizational element, enabling the capture of goods flows moving through international logistics networks and performing operations on the goods.
Definition of a Free Trade Zone:
A Free Trade Zone (FTZ) is a designated part of a customs territory where domestic and foreign business entities can conduct production and trade activities, benefiting from a system of duty and tax suspension.
Advantages of a Free Trade Zone1
A Free Trade Zone is a place where typical logistics processes such as storage, warehousing, packaging, consolidation, and deconsolidation of goods intended for foreign recipients or imported by importers for domestic needs take place.
Storing goods in an FTZ and performing processing, refinement, and logistics operations on them is associated with a number of significant commercial benefits.