Free Trade Zone Investment
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Questions and Answers

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?

  • 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?

  • Exemption from certain taxes and duties (correct)
  • Increased bureaucratic processes
  • Limited access to international markets
  • Higher taxes compared to other areas
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