Free Trade Zones
Free Trade Zone, popularly called as FTZ, is a place where goods may be traded without any barriers imposed by clients authorities like quotas & tariffs. Free Trade Zone is a special designated place with in a country where normal trade barriers such as quotas, tariffs are removed & the bureaucratic necessities are narrowed in order to pull new business & foreign investments. Free trade zones are grew in area that is geographically advantageous for trade. Area near international seaports, airports and the like are chose for developing free trade zones. The FTZ can be set as a labor intensive manufacturing hub, which requires the import of components & raw materials, and the made goods are exported to many countries. The Free trade zones are settled in the developing countries. Out-sourcing the area to the FTZ operator minimizes the bureaucracy and the businesses firm in that area may be given tax benefits. One of the main aims of the free trade zones is to grow the economy of that location by offering more job opportunities, manufacturing options, business options and etc. These are largely used by transnational corporations for establishing companies for the manufacturing of various goods. The goods depend on the availability, skilled labor, of the raw material, and well-equipped technical staff. The main idea behind free trade zones creation is to facilitate cross border trade by getting rid of obstacles imposed by regulations of customs. These ensure faster turnaround of planes & ships by lowering custom formalities. FTZs offer to be beneficial both for the importers & exporters, as these areas are designed to cutd own labor cost & tax related expenditure. These zones help the traders to use the available business opportunities in the great possible way. They promote export oriented industries. These are also help to increase earnings of foreign exchange. Employment opportunities developed by free trade zones help to cut down unemployment issue in the less developed economies. The governments of countries give relaxation of the rules pertaining to environmental protection & negligence to the workers, tax holiday for the first few years, and sometimes the initial setting up cost of the production unit.
Free Zones in UAE have always been eager to help investors & businessmen in making a reality of goal of experiencing the most about business freedom in the United Arab Emirates Free zones. Their services include, visiting various sites suited to customers requirement, complete documentation for licensing, Helping in visa application and residence permit & banking. UAE Free Zones includes Masdar City, Abu Dhabi Airport Free Zone, Abu Dhabi Ports Company, Khalifa Industrial Zone, Zones Corp, Dubai Airport Free zone, Dubai Silicon Oasis, Dubai Multi Commodities Center, Dubai Internet City, Jebel Ali Free Zone, Dubai Media City, Dubai Studio City, Dubai Academic City, Dubai Outsource Zone, Dubai Knowledge Village, Enpark, Intl Media Production Zone, Dubai Biotech Research Park, Gold and Diamond Park, Dubai Healthcare City, Dubai Auto Zone, Dubai Intl Financial Centre, Dubai Logistics City, Dubai Flower Centre, Dubai Maritime City, Intl Humanitarian City, Sharjah Airport Free Zone, Ahmed Bin Rashid FZ, Hamriyah Free Zone, Ajman Free Zone Authority, RAK Investment Authority, RAK Maritime City, RAK Free Zone, Fujairah Creative City, Fujairah Free Zone and etc.
The setting up of Free trade zones have also been criticized, for encouraging commercial activities sometimes under the influence of corrupt governments, and for providing the multinational corporations with more economic liberty. A number of developing countries have allowed the local industrialist to set up units located within the free trade zones, in order to exploit the export-based incentives.
A free trade zone (FTZ) 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. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to the prevailing customs duties. Free-trade zones are organized around major seaports, international airports, and national frontiers'areas with many geographic advantages for trade. It is a region where a group of countries has agreed to reduce or eliminate trade barriers. Free trade zones can also be defined as labor-intensive manufacturing centers that involve the import of raw materials or components and the export of factory products.