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Free Zone – the place where you can grow a business

Free zones are part of the Community customs territory or premises situated in that territory separated from the rest thereof, wherein :
a) community goods are considered , regarding the application of import duties and commercial policy measures on imports, as not being on Community customs territory , as long as they are not released into free circulation or placed under another customs procedure or used or consumed in other conditions than those set forth in customs regulations;
b) community goods for which no such provision in accordance with Community legislation governing specific fields , benefiting from measures related routinely export of goods based on their placement in a free zone or free warehouse.

In the business sphere often convey the notion of the free zone.
Businesses that have as their main component import-export operations and, in particular, trade relations with countries outside the European Union can use a good tool for optimization in terms of tax costs.

Free economic zones

Through the free economic zone (FEZ) it defines an area of a State where the goods can be entered for the processing and marketing of tariff and non-tariff restrictions without application of the customs regime.

Among the strategic objectives of FEZ in the national economy (the host country economy) are usually mentioned:

• attracting capital and foreign investors;
• increasing the volume of goods exported and their quality;
• better harnessing human potential and absorption of unemployment by creating new jobs;
• introduction of new technologies, improved and competitive;
• attract manufacturers of defective goods on the world market;
• better harnessing the potential geographic and economic area;
• achieving a favorable impact on the national economy (the host country) and regional. The most important advantage consists of activities for the tax exemption on income derived from operations performed within the FEZ. Minimum of 5 years and the maximum of 20 years, which is exempt from tax. It is also more practical reductions on income tax, reducing the total or partial taxation of reinvested earnings (usually 5 years), and foreign investors are exempt from paying property tax, the tax on circulation etc.

Other important advantages offered by FEZ are: the importation of goods free of customs duty, the cancellation of control over prices, hiring free labor, offering additional benefits on the size of the rent requested, setting payment deadlines, etc.

The economic efficiency of FEZ consists in increasing the value and volume of economic activities, introduction of modern technologies, the development of import -export operations, producing goods in more favorable conditions. FEZ enable reduced administrative formalities, low cost storage, export and import quota absence, the absence of foreign exchange controls , as well as some capital assets in duty repatriation of profits.