A free trade zone is a type of Special Economic Zone (SEZ), which refers to an economic zone that is exempt from trade-related charges such as duties and taxes.
In these regions, goods manufactured, stored and handled are subject to different customspreferences. They often receive relief and incentives to encourage investment.
Here is the OECD definition of a free trade area:
"Countries that generally remove tariff and non-tariff trade barriers among member countries but have no common trade policy for non-member countries"
-Organisation for Economic Co-operation and Development (OECD)
The benefits of a free trade zone include:
Promote trade and business opportunities
Reduce logistics costs
Reduce red tape and bureaucracy
Increase foreign exchange earnings
Create job opportunies
Attract investment
History of Free Trade Zones
To understand the history of free trade zones, we must look at the general category: Special Economic Zones (SEZs).
There are many different variations of the term SEZ. But they are all built for the same purpose.
The first SEZs are simply called "free zones" and are designated areas, usually adjacent to seaports, airports or between two or more countries. These started in the 1960s and started growing exponentially in the 1980s.
Today, there are more than 5,400 SEZs around the world. Of these, 1,000 were established within the past five years. Experts expect more than 500 new special economic zones to be established in the next few years.
North American Free Trade Agreement (NAFTA)
EU single market
African Continental Free Trade Area (AfCFTA)
Association of Southeast Asian Nations Free Trade Area (AFTA)
India is one of the largest maritime countries in the world, with more than 7,500 kilometers of coastline. The country's freight capacity has grown by more than 600 metric tons over the past few years and is expected to continue to grow in the years to come.
If you've been thinking about shippingto India, now is a good time to start. Still, you might be a little confused about how to ship your products to India and make sure everything is handled the right way.
If this happens to you, keep reading.
1. Preparation is key
It doesn't matter where you plan to ship the goods. If you want to make sure everything is intact and without any unnecessary obstacles, you need to make sure to prepare beforehand.
When preparing to ship your goods to India, you need to take some special steps, including the following:
Know where you're shippingyour goods and make sure you have the correct details about your contacts at that location
Correctly spell the consignee's name when filling out shipping documents, and ensure that the consignee's address, phone number, and other contact information are correct
Make sure all your items are properly packaged
Make sure everything is listed on your invoice before you ship the goods out
A little preparation and planning goes a long way, especially when you're shipping items overseas.
One of the most important shipping documents you need to complete is the customsdocuments associated with your shipment. Incorrect or incomplete customsdocumentation is a recipe for disaster, no matter how big or small your shipment is.
If you work with a professional shippingcompany, they will likely provide you with all the paperwork you need. However, be sure to check beforehand that you have filled out everything accurately. This will save you a lot of trouble later.
3. Prohibited and restricted items
Another way to avoid unnecessary and expensive shipping and prevent your shipments from being held up at customs is to make sure you have a thorough understanding of what items are prohibited and restricted.
Each country has its own rules on what can and cannot be brought into the country, and you need to know these before shipping anything.
4. Food Transportation Rules
You can ship food to India. However, you must take special measures when packing and preparing these items, including the following:
Food should be in original packaging
Packaging must be sealed
Labels must list all ingredients in the food
The shelf life of the food should be at least six months (from the date of shipment)
5. Costly mistakes to avoid
If you make certain mistakes during shipping, your company could end up losing a lot of money. Here are some of the most common (and costly) mistakes people make when shipping to India:
Spelling mistake
Incorrect address or contact information
Failure to complete necessary customs paperwork
Do not work with professional shipping companies
You might think it's in your best interest to avoid spending extra money working with a shipping company. If you've never shipped your goods overseas or to places like India before, it pays to have a professional (or team of professionals) at your corner. Like TJ chinafreight, they will give you the help you need to make sure everything goes smoothly.
The Republic of Colombia occupies mostly South American territory, but also has some territory in North America. It has some of the finest emeralds and tropical landscapes in the world and is home to some of the most lucrative ports on the Caribbean and Pacific coasts. These ports facilitate trade and commerce with North American and other Pacific nations, as well as their South American counterparts. Colombia is the only country in South America with access to the Pacific and Caribbean trade routes.
Here are the top five ports in Colombia:
Puerto barranquilla
Located near the mouth of the Magdalena River along Colombia's Caribbean coast, the port is one of the most modern liquid bulk facilities in the county. The Palermo Tank Terminal is located on the port premises and has a capacity of 352,000 barrels of refined oil and crude oil.
The terminal has two storage tanks, infrastructure for easy loading and unloading of bulk liquids, and a dock for handling ships. The long-term vision for the port is to hold 2.5 million barrels of liquid substances, from bitumen to petrochemicals and vegetable oils.
Port of cartagena
Locally known as the Port of Cartagena, but officially it is called the Port of Cartagena. It is home to large cruise ships that transport passengers to the city of Cartagena, as well as larger ships carrying general cargoand other import and export cargo. As the fourth largest port in Colombia, it has the capacity to handle 80% of the region's importsand 60% of its exports. The agricultural activity in Colombia's Murcia region is intensive, providing more than 2.5 billion euros worth of fruits and vegetables, most of which pass through this port.
The port has two main terminals, 1.5 miles from each other by sea and 5 kilometers by road. The marinas are Escombreras and Cartagena. Because the port is a deep-water bay and is not affected by wind, currents are weak. It has the Compas terminal in the El Bosque district and the contecar terminal in the Ceballos district. Both handle dry bulk, liquid bulk, containers, breakbulk and some cruise traffic.
Puerto santa marta
The port is operated by the Santa Marta Ports Association and is located on Colombia's Caribbean coast. It consists of seven terminals and provides rail services to facilitate the loading and unloading of goods through the port. It is Colombia's main port on the maritime trade route to the Intra-Atlantic.
The port handles many types of cargo, from palm oil to fuel and carbon as well as grains and containers. One of the port's greatest strengths is its ability to cater to post-Panamax carriers with high cubic cargo. In terms of bulk cargoes from Colombia, the port has the third highest traffic volume.
Puerto tumaco
The Port of Tumaco is located in the city of Tumaco on the Pacific coast. The premises have berthing facilities to handle dry and liquid bulk cargoes passing through the port. It also has a marine terminal that handles the country's exported crude oil. The port of Tumaco is well connected by road and plane to the surrounding area, including the Colombian capital, Bogota and the western city of Cali.
Bananas grown in the Pacific lowlands enter the port for export, but are mainly used as a terminal for crude oil from the Putamayo field, about 160 kilometers southeast of the port. It is also a major fishing port promoting the export of tuna and sardines. The nearby airport makes it a popular port for importing delicate, time-sensitive goods and products as they reach the hinterland faster.
Puerto buenaventura
This is a seaport in front of the Columbia Pacific Ocean. It also happens to be the country's main port of call in the Pacific region. The port, also located in Tumaco, is a veritable "good luck" that has been a boon for the Colombian economy due to the volume of bulk cargoes it handles. The Port of Buenaventura has direct trade routes to Asian markets, which are starting to become as lucrative as the U.S. and European markets.
The port generates 27% of Colombia's total customsrevenue. It is able to attract investment and trade because of its proximity to Mexico and Chile, and access to markets in Southeast Asia and beyond. Considering the city was once one of the deadliest due to the widespread cocaine wars in the port, the rebranding of Buenaventura into a growing center of trade and commerce is impressive.
The UK government has announced an updated approach to import controls to help ease current cost-of-living pressures, and has suggested that the remaining import controls on EU goods will not be imposed this year. Instead, traders will continue to move their goods from the EU to the UK as they do now.
The government will review how these remaining controls will be implemented and further details will be published in the new control regime, which is targeted to come into effect by the end of 2023.
Specifically, the following controls planned to be implemented from July 2022 will no longer be in place, they are:
Require further Sanitary and Phytosanitary (SPS) inspection of EU importscurrently at destination for transfer to Border Control Points (BCPs)
Safety and Security Declaration Requirements for Imported Products in the EU
Requirements for further health certification and SPS inspection of EU imports
Ban and limit the import of chilled meat from the EU
The controls that have been introduced will remain the same, they are:
The highest risk imports of animals, animal products, plants and plant products will continue to apply to customs controls already in place
Safety and security checks introduced last year remain in effect as part of existing customs controls introduced in 2021
If businesses import goods into the UK from other non-EU countries, they are still legally obliged to submit an S&S Entry Summary Statement (ENS) for these movements
Regarding safety and security statements (also known as ENS documents or "EUICS"), the current requirements are:
UK and Northern Ireland to EU = EU requires ENS
Rest of world to EU = EU requires ENS
EU to UK and Northern Ireland = not needed, postponed now
Rest of World (non-EU) to GB and Northern Ireland = GB/Northern Ireland requires ENS
GB to Northern Ireland = ENS required for Northern Ireland
Northern Ireland to GB = GB No ENS required
A GB EORI number is required for any UK port application.
Any declaration at EU ports requires an EORI number from the EU customs authority.
Details to remember when transporting heavy equipment
Understandably, most customers want the best combination of price and service to ship heavy equipment. Often, the company with the most detailed information gets the best prices, the best service, and the most loyal truck drivers. Unfortunately, it doesn't take much to make truckers want to pass on your cargo.
In order for shippers to have the opportunity to receive the best price and best service, they need to ensure that their heavy equipment shipments are attractive to as many trucks as possible. Having as much information as possible - including small details that can have a big impact on truckers and shipping- can help make your shipments more attractive and give you the best results (pro tip: working with a shipping partner can make a big difference Influence how truckers view your shipments and help you get the best price, service and delivery schedule).
Gather important but small details about the actual heavy equipment you are shipping.
When transporting any type of heavy equipment, having as much information as possible is essential to ensure safe and efficient transport. Here is a list of some of the most critical data to share with your shipping partner (or review it with your shipping partner so he or she can help you fill any gaps!):
The value of the commodity. How much is your heavy equipment worth, literally?
The make and model of the device. Be sure to know exactly what you're shipping.
Any modifications made to the equipment. It is important to be aware of any information that may change the basic specifications of your shipment.
Precise size and weight. An inch or two off could mean a different truck or a different route for your load. This has the potential to cause significant cost variances and/or delays. For heavy equipment, the exact Weight is also important, which affects which type of trailer is required. Ultimately, size and weight also affect your shipping costs and schedule.
Package. Will your heavy equipment be palletized or boxed? Need to cover with tarp?
A photo of your device. Photos are a great reference point to make sure everyone is on the same page.
Relevant names, phone numbers and emails. Having this information at your fingertips prevents scrambling. This information should be collected for delivery and delivery and customs brokers (together with account numbers).
Pickup and delivery routes. Likewise, having direction at hand can keep everyone on track and set expectations.
Hours and days of operation for pickup and delivery. If the driver arrives with heavy equipment and the recipient isn't ready or unable to receive it, these details can help prevent a big headache! Customsdocuments. This is especially important for heavy equipment that will cross the border between Canada and the United States.
Take the stress out of transporting goods.
Gathering all this information can be time-consuming. If the thought of collecting and organizing all this information is overwhelming, you may want to consider working with a trusted shipping provider.
The U.S. Shipper Export Declaration (SED) is a standard U.S. government form for all U.S. exports valued at $2,500 or more. It has been superseded by the Electronic Export Information Form (EEI).
If the value of a single item in a U.S. export exceeds $2,500.00, an EEI must be submitted to the U.S. Census Bureau. The U.S. Census Bureau uses the EEI to compile trade statistics and enforce export controls.
The Census Bureau requires exporters to complete the SED for two main purposes:
Fulfilling obligations to collect U.S. export data, including the export value of each commodity.
Help ensure compliance with U.S. export regulations that require exporters to provide export license information.
The FTR requires exporters to complete SED for shipments with a merchandise value exceeding $2,500 per Schedule B number and for mail-in shipments with a value of at least $500. SED is required for all shipments that require an export license or are destined for embargoed countries, regardless of value.
How to use the export declaration?
Any U.S. exporter (or freight forwarder) must complete Form 2575-V required by the U.S. Department of Commerce and submit it to U.S. Customs at the port of export. If the value of the exported goods is $2,500 or more, or the value of the mailed goods is $500 or more, the individual must make the necessary filings. This form must be completed for any shipment to an embargoed country or that requires an exporter's license. The U.S. Census Bureau uses this form to compile trade statistics and enforce export controls. The Automated Export System (AES) allows shippers to make the necessary declarations online.
According to the Census Bureau, more than half of all SEDs submitted by exporters contain errors, making accurate data collection difficult. In the mid-1990s, in an effort to improve data accuracy and ease of data collection, the Census Bureau, in partnership with what is now the Bureau of Industry and Security (BIS) and the Department of State, introduced electronic collection of SED information through the Automatic Export System (AES).
