The advantages of a Free Trade Zone:
- General income tax on the consumption of manufactured goods, production costs of labor and salaried employees. The exception is commercial users who are subject to shared prices. - Customs duties (VAT and ARANCEL) are not charged, and goods imported abroad are free of charge.
- Exemption of LAK raw materials, goods and finished products sold from the national customs territory to industrial users of the free trade zone.Ā
-VAT exemption for goods sold in foreign markets.
- Exports from the free trade zone to third countries are subject to international trade agreements.
- National origin is recognized for goods manufactured, elaborated, transformed in free trade zones or products of any elaboration process.
- Possibility of partial processing outside the free zone.
- Possibility of paying 100% for goods or services produced in the free trade zone in the country's territory with the corresponding tariff and payment of VAT for 16 costs only from third countries.
Disadvantages in a Free Trade Zone
The disadvantages of free trade zones are the complexity they can cause, identity modeling, the possibility of rodents entering and leaving, catching diseases from other countries, committing all kinds of crimes. Avoiding compliance with sanitary, phytosanitary and environmental requirements of free trade zones.
Tax cuts may not be as good as agreed, or there may be tariffs or positive taxes on imports from foreign countries. They do not allow warehousing of goods, equipment or others under any circumstances. This can be a big disadvantage because capacity is insufficient or poorly protected, because there is no real innovation in the process or there are delays during the delay. In domestic or international business, not as expected due to lack of production support services or neglect of operational advantages.