Here Are The 3 Things You Didn’t Know About The LATAM Free Trade Zones.
Businesses have enlarged their horizons in this globalized world and have submerged into the foreign lands of the triumph and profitability while doing business abroad. Consciousness nurtures about the huge profit margins that doing business across international borders can provide in LATAM Free Trade Zones. Nonetheless, Some are hesitant to examine the waters due to misunderstanding of the difficulties they believe they will be accustomed when dealing with foreign governments and trade bodies- especially for those who have an interest in doing business in Latin American countries like Chile, Peru, Mexico, Colombia, and others. In this issue, you will discover 3 things you did not know about the benefits of Latin American Free trade agreements (focusing on free trade zones or foreign trade zones) and why you should consider taking advantage of them.
LATAM Free Trade Zones
Outlined below, are the 3 things we gathered from our interview that you might not have known about Free Trade Zones in Latin America.
All people love the word free despite the fact that we tend to be doubtful of the term because life lectures us that “There’s no such thing as a free lunch”. The word might appear confusing, so to help you better understand how FTZs work, with the executive director of the Association of Free Trade Zones in the Americas we got it together, Even Maria Camila Moreno, and asked her some questions to help and throw light on what FTZz are in LATAM Free Trade Zones, and more consequentially what their benefits are for you. There are 3 things we gathered from our interview that you might not have known about Free Trade Zones in Latin America. . Be solace for the fact that you are not desolated in the unpredictability and hesitation you sense in engaging in LATAM Free Trade Zones.
FTZs Simplify Government Restrictions, They Do Not Eliminate Them
Q:What is a Free Trade Zone?
A: In short, A free trade zone it is a geographic area where goods may be landed, stored, handled, manufactured, or reconfigured, and re-exported under specific customs regulation and generally not subject to customs duty. Free trade zones are generally organized around major seaports, international airports, and national frontiers—areas with many geographic advantages for trade. An example is the LATAM Free Trade Zones.
- They are as follow:
- Reduced or lower income taxes
- 0% Value Added Tax (VAT)
- 0% on Tariffs
Q: Do I still need to pay duties to the country I export my products to?
A: Yes, you will. FTZs do not annihilate your commitment to recompense responsibilities on the products you export. What they do offer is a strategic, tactical and calculated place where you can place or put and mass-produce,
construct and assemble your products and make changes to your inventory with the incentives indicated earlier.