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FTW SEZ unit advantage

The document outlines the benefits of using Sarveshwar Free Trade SEZ for warehousing, highlighting significant savings in logistics costs (30-40%) compared to traditional CFS and bonded warehouses. Key advantages include no working capital blockage, reduced interest costs, no penalties for late filings, and various operational efficiencies. Additionally, it emphasizes improved quality control, flexibility in inventory management, and value-added services that enhance the overall business model for importers.

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mukesh2800
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30 views2 pages

FTW SEZ unit advantage

The document outlines the benefits of using Sarveshwar Free Trade SEZ for warehousing, highlighting significant savings in logistics costs (30-40%) compared to traditional CFS and bonded warehouses. Key advantages include no working capital blockage, reduced interest costs, no penalties for late filings, and various operational efficiencies. Additionally, it emphasizes improved quality control, flexibility in inventory management, and value-added services that enhance the overall business model for importers.

Uploaded by

mukesh2800
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Sarveshwar Free trade Sez waterwarehousing Saving & benefits to importers

Customer will save 30-40% in Logistics cost in compare to CFS + Bonded


warehouse

1 NO Working capital Blockage, also advantage Save interest cost approx. 12 to 18% PA Interest On your
of opportunity profit working capital limit. Same can be invested in business to
make more money

2 NO Interest on duty liability after 90 days Bonded customer needs to pay 15% interest on duty liability
after 90 days
3 NO Penalty on late filing of IGM Rs. 5000/ per day from first 3 days than Rs. 10000/ Per day
4 NO stamp duty on cargo imports through SEZ .10% of Cargo Assessable Value Duty
5 NO insurance charge as like in Bonded Approx .15% of Cargo value + duty amount (.25
warehouse (many times it is more than storage) paisa/1000/week

6 No Multi handling cost of movement from Port Approx Rs. 12,000/- to 16,000/-
to CFS & CFS to Bonded warehouse.
7 NO risk of exorbitant detention from Fixed rent on storage no incremental charges
shipping line & Ground rent from CFS

8 NO operating expenses to keep office in Just in time delivery for foreign supplier without opening
India office in India

9 Single window clearance with NSDL software Unvaluable


instead EDI. Buyer/supplier name, cost &
country data secrecy in NSDL.

10 Flexibility: either supplier can keep control on Better Quality Control of cargo with lab testing & other
inventory or consignee can keep control on certification
inventory whereas in bond only consignee can
keep control
11 Quality checks & controls Safe & reliable Business model worldwide acceptable.
Buyer can return the cargo if it’s not as per standard without
any hassle from customs

12 Duty free consolidation & improved asset No need to file shipping bill at every entry
utilisation. easy re- export of excess cargo.

13 Unique Facility of “Temporary Removal” Customer can bring high value imported cargo in FTWZ
without BG, Bond. than can bring in DTA India for value addition without duty
payment, BG, Triple duty Bond
14 Value added services Easy of doing in value added services for
approx. 70+ services.
Calculate your Saving in FTWZ at your own
Via CFS + Bond charges CFS Cost Via SEZ FTZ cost
CFS Charges 10,000 SEZ Charges 42,025
CFS to Bonded warehouse transport 9,500 Inbound/outbound charges 7,500
Unloading 8,750 Unloading
Loading 8,750 Loading
Storage 18,000 Storage 1 month 24,600
Stamp duty 20,200 Stamp duty -
Bond insurance monthly 30,300 Bond insurance monthly -
Duty interest monthly 12,120 Duty interest monthly -
CC OD Interest @15% 1,01,000 monthly Saving in interest cost
Total Cost 2,18,620 74,125

Additional Saving not considered


Shipping line detention Incremental Shipping line detention Zero
CFS Ground rent Incremental FTZ storage Fixed
Fund Opportunity cost OD/CC Interest Additional 10% profit by using ZERO
working capital
Bond storage minimum 4 week Fixed FTZ storage Fixed
Inbound process timeline 7 days 3 days
outbound process timeline 5 Days 1 Days

Estimates on following basis


Cargo will come in 40' container
Cargo weigh will be 25 MT
Cargo value will be 2 Crore
Duty will be around 40%
Cargo value will be 2 Crore per container 2,00,00,000
1% freight & insurance 2,00,000
CIF AV 2,02,00,000
Duty will be around 40% 80,80,000
Total Value 2,82,80,000

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