Banking Term: Free Trade Zone
- It is a customs-defined area in which goods or services may be processed or transacted without attracting taxes or duties or being subjected to certain regulation.
- A special case is t free Port into which goods are imported free of custom tariffs or taxes.
- The objective behind the scheme is to encourage bulk exporters.
- 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.