What is meant by free zone?

: an area within which goods may be received and stored without payment of duty.

What is a Freezone area?

A free zone, also known as a free trade zone, is a defined geographical area within each emirate. A free zone may also exist as the result of a mutual agreement between several countries to create a customs-free zone in a designated area.

What are the benefits of a free zone?

Free Zone Benefits and Costs

• 100% foreign ownership.
• 100% repatriation of capital and profits.
• 100% import and export tax exemption.
• 100% exemption from income and corporate taxes.

What are the different types of free zones?

​​3. Free Trade Zones Types

• Permanent FTZ (PFTZ)
• Single Enterprise FTZ (SEFTZ)
• Transitory.

What are the benefits of a free trade zone?

Companies which operate out of free trade zones often defer, reduce or even eliminate tariffs and taxes. Some of the benefits free trade zones offer include: Eliminating duties and quota charges on merchandise exported. Deferring Customs duties and federal excise tax on imports.

What is an example of a free trade zone?

Free-trade zones are organized around major seaports, international airports, and national frontiers—areas with many geographic advantages for trade. Examples include Hong Kong, Singapore, Colón (Panama), Copenhagen, Stockholm, Gdańsk (Poland), Los Angeles, and New York City.

What does free trade zone mean?

Free trade zone. A free trade zone is a specific class of special economic zone. They are a geographic area where goods may be landed, handled, manufactured or reconfigured, and reexported without the intervention of the customs authorities.

What are the tax free zones?

Tax free zones are designated areas in which specified businesses are exempt from state sales tax. They have been utilized both independently and in conjunction with other tax incentives, usually as part of a larger economic development effort, such as enterprise zones.