BML FTWZ
BML Free Trade Warehouse
Custom Bonded Warehouse
Domestic Tariff Area
Port Status
SEZ Act Sec 53(2). FTWZ is a Deemed Port
No Deemed Port status.
No Deemed Port status.
NFE
FTWZ Units are required to be NFE positive under SEZ Rule 53
No NFE requirement by Bonded Warehouses.
No NFE requirement for DTA.
Assessment of Duty
Since the FTWZ is a Deemed Port the goods are NOT assessed for Duty. A Bill of Entry for home consumption is filed with FTWZ Unit for transfer of goods from Airport/Seaport to FTWZ.
Bill of Entry for Warehousing is filed and assessed for Duty before being permitted to move to the Bonded Warehouses.
Goods assessed and duty levied immediately upon import.
Multi-Country Consolidation
Consolidation of goods from Multi-Country permitted as per customer’s requirement.
Consolidation of goods not Permitted.
Consolidation not permitted for DTA.
Duty Deferment Bond
No requirement for a double duty bond
Additional double duty bond required.
No duty deferment bond required.
Movement from Customs Gateway
Goods are transported from customs gateway to BML FTWZ via transshipment procedure without assessment by Customs in turn decreasing Customs process lead time.
Movement of goods into the bonded warehouse are subject to assessment at Gateway Customs.
Standard customs assessment at entry.
Value Added Services (VAS)
Can carry out Value Added Services as provided for SEZ Rule 18 (5)
Value Added Services are permitted, subject to Customs permission in advance of any such activities.
Value Added Services permitted with fewer restrictions.
Holding Goods on Account of Foreign Supplier / Buyer
Permitted under SEZ Rule 18 (5)
Not permitted.
Not permitted in DTA.
Restricted Goods Imports
Permissible to enter the FTWZ.
Goods can enter Bonded Warehouse pending Production of import license.
Restricted goods can enter subject to import licenses.
Prohibited Goods Imports
Permissible to enter the FTWZ with the Approval of the BOA
Not Permissible.
Prohibited goods not permitted.
Period of Storage
SEZ Rule 37 permits the goods to be kept until the Validity of the Unit Holder. The goods in the FTWZ are not assessed for Duty.
One Year, further extension allowed subject to approval from Chief Commissioner of Customs.
No specific limit; goods are domestically available.
Interest on Duty
Interest on Duty not applicable
Beyond 90 Days, interest is levied.
No interest as duty is assessed immediately.
Exemption from SAD
Exemption of 4% SAD against CST or GST applicable
SAD benefit applicable as per Customs notifications for pre-packed goods only.
Standard domestic tax rates apply.
Customs Set Up
Dedicated customs setup available within the FTWZ 24x7x365
Dedicated customs setup could be done subject to approval from Customs office.
Standard customs setup applies.
Customs procedure for Removal of Goods
Hassle-Free procedure for removal of goods from FTWZ to DTA. Customs processing done within the FTWZ zone.
All customs processing with the customs house located away from the bonded facility.
Standard removal procedures.
Compliance of Allied Acts
Payment of duty and compliance of allied acts, only when the goods move out of FTWZ into DTA
Payment of duty at the time of removal of goods along with applicable interest & upon production of applicable import license.
Compliance with allied acts required at entry.
Ease of EXIM Trade
Hassle-Free Procedure for re-exports and re-import unlike standard customs procedure.
Re-imports and re-exports go through standard customs approval procedures.
Standard import/export procedures.
Regional Trade Hubs
Possibility of using this facility as a regional hub. Permits operations of VMI model with Foreign Currency models.
Cannot be used as a regional hub since no facilities are available for export of goods and only INR transactions are permitted within a bonded warehouse.
Cannot serve as a regional hub; only for local trade.
Foreign Exchange
All Payments in Free Foreign Exchange
All payments in INR only.
All payments in INR only.
Requirement of Bank Guarantee & Double-Duty Bond
No Bank Guarantee requirement
Custom Bonded Warehouse Bank guarantee required for every shipment; Bond to be executed for 2x customs duty
Bank guarantee required for every Shipment
Requirement of double insurance
Client and warehouse both don't need insurance
Both parties require insurance Payable immediately
Customs to be paid immediatelyhence NA Double insurance not applicable
GST on Ocean Freight, Inbound Logistics (incl de-bulking and SKU wise stocking)
Deferred until clearance into Domestic Tariff Area
Payable immediately
Payable immediately
Storage period (without customs duty payment)
No Limit
90 days
None
Stamp Duty (0.1% of value including customs)
Exempt
Leveid
Leveid
Manual record keeping for Bonds
Exempt
For the Bond executed, manual records must be kept for 8 years, and the cancellation process is tedious
NA
High sea sales risk mitigation
Clients can sell the cargo after it lands on the port as it is still considered as foreign territory
Clients cannot sell the cargo after it lands on the port as it is still considered as foreign territory
Clients cannot sell the cargo after it lands on the port as it is still considered as foreign territory
Ease of change of ownership
Easy change of ownership of cargo from one to another entity
Such transfer of ownership not possible in a custom bonded WH
NA
Sales to SEZS, EOUS
As FTWZ comes under SEZ Act, sales to SEZS, EOUS is easy to execute
CRHS come under Ministry of Finand sales to SEZS, EOUS is difficult
under Ministry of Finand sales to SEZS, EOUS is difficult
