Banking Term: Free Trade Zone

Find important banking term that is useful in upcoming banking exam.

May 6, 2015 12:36 IST

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.

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