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Questions and Answers
What type of activities can take place in a free trade zone?
What type of activities can take place in a free trade zone?
- Manufacturing, packaging, and labeling of products for export (correct)
- Importing goods for domestic sale only
- Limited to storage of goods without any processing
- Exporting goods without any value addition
What is a free trade zone?
What is a free trade zone?
- A zone where only imported goods are allowed to be sold
- A zone where tariffs are higher than in the surrounding areas
- An area within which goods may be landed, handled, manufactured, or reconfigured, and re-exported without the intervention of the customs authorities (correct)
- An area where export of goods is prohibited
What is a benefit of investing in a free trade zone?
What is a benefit of investing in a free trade zone?
- Exemption from certain taxes and duties (correct)
- Increased bureaucratic processes
- Limited access to international markets
- Higher taxes compared to other areas
