Free trade zones are the areas that are within the borders of the customs area in terms of politics, but are allocated to the regions outside the customs line in terms of foreign trade and customs procedures. Although the free trade zone is physically included in the other borders of the country, the regions where the commercial, financial, economic, legal and administrative regulations valid in the country are not applied or partially applied are also not included in the customs line. These zones are close to international ports and airports but not included in the customs line. These areas are not included in the customs area.
Free zones are special places. Because these zones are the areas where import and commercial products are brought without the need for customs and legal and administrative regulations are minimized in order to support investment and production. So, importers and exporters trade by taking advantage of many advantages of free trade zones.
Free zones apply different incentives for industrial and commercial transactions valid in the country. For example, it is aimed to increase foreign trade and export-related activities in the country, foreign capital investments and foreign currency inflows. Besides, these foreign trade areas are also very suitable places for cost savings. Local producers have advantages such as international trade benefits in the world markets. In addition, it is aimed to create different business activities and increase employment. These are a few of the benefits of free trade zone.
Free trade zones have great importance in foreign trade. Because they aim to enrich the area culturally, to develop the country's economy positively, to increase employment and foreign exchange income from abroad, and to increase imports and exports.
Free zones provide great advantages especially for countries like Turkey, where finding a job and providing employment are difficult. In addition, free trade zone benefits are very important in these countries where there is a lot of economic fluctuation. For example, the number of people who have jobs in free zones in Turkey is more than 46 thousand people.
Turkey, which acts as a bridge between Asia and Europe in international trade, makes serious economic contributions by using all the advantages provided by its geographical location. Turkey has almost 21 free zones today.
Free zones facilitate international trade advantages. All profits from international trade in these regions are transferred at no charge. All free zones are exempt from income taxes, customs duties, corporate taxes or bank transaction taxes. Any currency that can be exchanged can be used easily in free zones. There is no time limit for a product to stay in the free zone.
Generally, there is no lockout or strike ban in free zones. No restrictions are imposed on foreign investment. Companies benefit equally from the rights offered in these regions. Free zones are modern places with their good working conditions and attractive infrastructure. In other words, these regions are places that provide attractive job opportunities.
A free trade area is a form of cooperation in which a group of countries decides mutually to remove trade barriers such as import and export duties. In other words, these regions are custom territories. Thanks to these regions, companies make international trade more easily. They also encourage companies to invest in these countries.
A feature of free trade zones is that member countries can regulate import duties for goods coming from outside the zone. This is why it differs from a customs union where a common external tariff is applied. Border controls and additional import duties are still required. Companies generally prefer to trade with countries with the lowest customs duties. However, unequal competition can be prevented with additional import duties.
The advantages of free zones and trade in this area were as follows:
If you want to have an important share in international trade and take advantage of all the advantages of free zones, you can consider free zone trade.
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