Trading & Manufacturing Businesses: Save Money on Imports!

[Pradeep Reddy]

Rahul runs a 𝘁𝗿𝗮𝗱𝗶𝗻𝗴 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 and imports goods in bulk.

Meera runs a 𝗺𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗶𝗻𝗴 𝘂𝗻𝗶𝘁 and stocks raw materials in advance.

Both had the same problem:

💰 𝗛𝗶𝗴𝗵 𝗰𝘂𝘀𝘁𝗼𝗺𝘀 𝗱𝘂𝘁𝗶𝗲𝘀 𝘂𝗽𝗳𝗿𝗼𝗻𝘁
💸 𝗖𝗮𝘀𝗵 𝘀𝘁𝘂𝗰𝗸 𝗳𝗼𝗿 𝗺𝗼𝗻𝘁𝗵𝘀 𝗯𝗲𝗳𝗼𝗿𝗲 𝘀𝗲𝗹𝗹𝗶𝗻𝗴

Then, they learned about 𝗙𝗿𝗲𝗲 𝗧𝗿𝗮𝗱𝗲 𝗪𝗮𝗿𝗲𝗵𝗼𝘂𝘀𝗶𝗻𝗴 𝗭𝗼𝗻𝗲𝘀 (𝗙𝗧𝗪𝗭𝘀)—and everything changed.

By using an FTWZ:
✅ 𝗡𝗼 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗽𝗮𝘆 𝗰𝘂𝘀𝘁𝗼𝗺𝘀 𝗱𝘂𝘁𝘆 𝗶𝗺𝗺𝗲𝗱𝗶𝗮𝘁𝗲𝗹𝘆
✅ 𝗖𝗮𝘀𝗵 𝗳𝗹𝗼𝘄 𝗶𝗺𝗽𝗿𝗼𝘃𝗲𝗱
✅ 𝗘𝗮𝘀𝗶𝗲𝗿 𝘁𝗼 𝘀𝘁𝗼𝗰𝗸 𝗴𝗼𝗼𝗱𝘀 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗲𝘅𝘁𝗿𝗮 𝘁𝗮𝘅

If you are in 𝘁𝗿𝗮𝗱𝗶𝗻𝗴 𝗼𝗿 𝗺𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗶𝗻𝗴 and don’t buy everything just-in-time, 𝗙𝗧𝗪𝗭𝘀 𝗰𝗮𝗻 𝗵𝗲𝗹𝗽 𝘆𝗼𝘂 𝘀𝗮𝘃𝗲 𝗺𝗼𝗻𝗲𝘆 𝗮𝗻𝗱 𝗺𝗮𝗻𝗮𝗴𝗲 𝗰𝗮𝘀𝗵 𝗯𝗲𝘁𝘁𝗲𝗿.

𝗛𝗼𝘄 𝗙𝗧𝗪𝗭𝘀 𝗛𝗲𝗹𝗽 👇

1️⃣ 𝗜𝗺𝗽𝗼𝗿𝘁 𝗶𝗻𝘁𝗼 𝗙𝗧𝗪𝗭 & 𝗦𝗲𝗹𝗹 𝘁𝗼 𝗗𝗼𝗺𝗲𝘀𝘁𝗶𝗰 𝗕𝘂𝘆𝗲𝗿𝘀 (𝗗𝗧𝗔)

✔ No customs duty or IGST at the time of import—pay only when selling
✔ Goods sold to DTA are treated as imports (𝗯𝘂𝘆𝗲𝗿 𝗽𝗮𝘆𝘀 𝗖𝘂𝘀𝘁𝗼𝗺𝘀 𝗗𝘂𝘁𝘆, 𝗻𝗼𝘁 𝘀𝗲𝗹𝗹𝗲𝗿)
✔ Buyers can save on Customs Duty under 𝗔𝗱𝘃𝗮𝗻𝗰𝗲 𝗔𝘂𝘁𝗵𝗼𝗿𝗶𝘀𝗮𝘁𝗶𝗼𝗻 𝗼𝗿 𝗘𝗣𝗖𝗚
✔ No need for 𝗳𝗼𝗿𝗲𝗶𝗴𝗻 𝗰𝘂𝗿𝗿𝗲𝗻𝗰𝘆 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 from DTA buyers
✔ Foreign suppliers selling from FTWZ don’t need 𝗚𝗦𝗧 𝗿𝗲𝗴𝗶𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻
✔ 𝗕𝗲𝘀𝘁 𝗳𝗼𝗿 𝘁𝗿𝗮𝗱𝗲𝗿𝘀 𝘄𝗵𝗼 𝘀𝘁𝗼𝗰𝗸 𝗴𝗼𝗼𝗱𝘀 𝗯𝗲𝗳𝗼𝗿𝗲 𝘀𝗲𝗹𝗹𝗶𝗻𝗴

2️⃣ 𝗜𝗺𝗽𝗼𝗿𝘁 𝗶𝗻𝘁𝗼 𝗙𝗧𝗪𝗭 & 𝗦𝗲𝗹𝗹 𝘁𝗼 𝗔𝗻𝗼𝘁𝗵𝗲𝗿 𝗙𝗧𝗪𝗭 𝗼𝗿 𝗦𝗘𝗭

✔ 𝗡𝗼 𝗖𝘂𝘀𝘁𝗼𝗺𝘀 𝗗𝘂𝘁𝘆 𝗼𝗿 𝗚𝗦𝗧 when moving goods between FTWZs & SEZs
✔ Payments must be made in 𝗳𝗼𝗿𝗲𝗶𝗴𝗻 𝗰𝘂𝗿𝗿𝗲𝗻𝗰𝘆
✔ 𝗚𝗼𝗼𝗱 𝗳𝗼𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 𝗺𝗮𝗻𝗮𝗴𝗶𝗻𝗴 𝘀𝘁𝗼𝗰𝗸 𝗮𝗰𝗿𝗼𝘀𝘀 𝗺𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻𝘀

3️⃣ 𝗜𝗺𝗽𝗼𝗿𝘁 𝗶𝗻𝘁𝗼 𝗙𝗧𝗪𝗭 & 𝗥𝗲-𝗲𝘅𝗽𝗼𝗿𝘁 𝘁𝗼 𝗔𝗻𝗼𝘁𝗵𝗲𝗿 𝗖𝗼𝘂𝗻𝘁𝗿𝘆

✔ 𝗡𝗼 𝗖𝘂𝘀𝘁𝗼𝗺𝘀 𝗗𝘂𝘁𝘆 𝗼𝗿 𝗚𝗦𝗧 on re-exports
✔ Payments must be made in 𝗳𝗼𝗿𝗲𝗶𝗴𝗻 𝗰𝘂𝗿𝗿𝗲𝗻𝗰𝘆
✔ 𝗕𝗲𝘀𝘁 𝗳𝗼𝗿 𝘁𝗿𝗮𝗱𝗲𝗿𝘀 𝗯𝘂𝘆𝗶𝗻𝗴 𝗶𝗻 𝗯𝘂𝗹𝗸 𝗮𝗻𝗱 𝗲𝘅𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗹𝗮𝘁𝗲𝗿

4️⃣ 𝗧𝗿𝗮𝗻𝘀𝗳𝗲𝗿 𝗳𝗿𝗼𝗺 𝗗𝗧𝗔 𝘁𝗼 𝗙𝗧𝗪𝗭 𝗳𝗼𝗿 𝗘𝘅𝗽𝗼𝗿𝘁

✔ Treated as 𝘇𝗲𝗿𝗼-𝗿𝗮𝘁𝗲𝗱 𝘀𝘂𝗽𝗽𝗹𝘆 under GST (No GST applicable)
✔ DTA suppliers can 𝗰𝗹𝗮𝗶𝗺 𝗚𝗦𝗧 𝗿𝗲𝗳𝘂𝗻𝗱𝘀, 𝗱𝘂𝘁𝘆 𝗱𝗿𝗮𝘄𝗯𝗮𝗰𝗸 & 𝗲𝘅𝗽𝗼𝗿𝘁 𝗶𝗻𝗰𝗲𝗻𝘁𝗶𝘃𝗲𝘀
✔ 𝗕𝗲𝘀𝘁 𝗳𝗼𝗿 𝗺𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗲𝗿𝘀 𝗲𝘅𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗶𝗻 𝗯𝗮𝘁𝗰𝗵𝗲𝘀

FTWZs don’t just save tax—they 𝗵𝗲𝗹𝗽 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 𝗺𝗮𝗻𝗮𝗴𝗲 𝗰𝗮𝘀𝗵 𝗳𝗹𝗼𝘄 𝗯𝗲𝘁𝘁𝗲𝗿.

Now, when someone talks about 𝗰𝗮𝘀𝗵 𝗴𝗲𝘁𝘁𝗶𝗻𝗴 𝘀𝘁𝘂𝗰𝗸 𝗶𝗻 𝗱𝘂𝘁𝗶𝗲𝘀, Rahul and Meera simply say: "If you’re not using an FTWZ, you’re losing money!"