The free zone is a strategic area for logistics and supply chain, characterized by a specialized commercial environment and multiple advantages. It is located within a country with a favorable tax and customs regime that allows companies to streamline operations, reduce costs and improve their competitiveness in the international market.
This enclave drives economic growth and attracts investment in the global market. In addition, it provides opportunities to manufacture and offer international services, taking advantage of tax and customs benefits. These incentives represent a highly competitive advantage for companies that decide to establish themselves within these zones, formalizing their processes and maximizing their business opportunities.
Utilities of free zones in logistics and international trade
In free zones, manufacturing or distribution companies enjoy significant advantages, as they allow them to add value to the production chain and re-export processed or semi-finished products without incurring taxes for the temporary entry of such products.
The practice of using free zones for maquila activities or to carry out production phases within trade agreements such as Free Trade Agreements (FTAs) is common and is designed to promote economic activity and facilitate international trade. By allowing the temporary importation of materials or components, companies can benefit from lower costs, greater efficiency, and greater competitiveness in international markets.
However, it is important to note that free zone regulations and policies may vary depending on the country and the specific trade agreement. Therefore, it is always advisable that companies interested in using these zones are properly informed about the specific requirements and benefits of the free zone in which they wish to operate.
The advantages of logistics and the supply chain in a free zone context
When we talk about logistics and the supply chain related to the free zone, the advantages are many, since each country establishes regulations based on its current economic situation or the needs it has when carrying out contracts with partners abroad.
With respect to the advantages of the free zone we can mention some such as:
- Significant savings in logistics costs.
- Streamlining of procedures and flexibility in logistics requirements.
- Companies can store their products indefinitely in warehouses.
- Ease of creating strategic alliances with other companies abroad.
- Economic growth both for logistics companies and also for the countries involved in this lucrative activity.
The positive impact on supply chains and logistics planning
The implementation of free zones has had a highly favorable impact on logistics planning and the supply chain because it facilitates the import and export of products by offering tax benefits and reductions in customs tariffs. This streamlines the flow of goods and reduces transportation costs.
This allows companies to plan their sourcing and distribution activities more efficiently, optimizing the necessary time and resources. In addition, by locating in a free zone, companies have access to specialized logistics infrastructure and support services, such as warehousing and customs management, which simplifies supply chain management.
On the other hand, it also provides flexibility to users, who can obtain direct permits to remove their goods once they arrive in the area. This flexibility also extends to international shipments, as users can make recurring shipments without undergoing strict controls or additional expenses.
Undoubtedly, the free zone not only improves and strengthens logistics planning and the supply chain, but also generates a positive impact at the economic and social level by promoting the growth of companies, creating jobs and providing consumers with a greater offer of international products at more affordable prices.
To learn more about logistics, we invite you to explore the contents of our blog that we have prepared to help you obtain accurate and reliable information that will allow you to expand your horizons and develop efficient strategies in this field.