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Free Zones: requirements and benefits

Free zones are geographical areas of a country that is considered outside the national customs territories. In them a group of companies that can access goods of foreign origin is placed, this without having to pay customs tax.

In the international legal framework, these special zones are referred to. We invite you to continue reading to find out about the elements that constitute the free zones.

Free Zones Regime

This allows companies to make new investments in the country as long as it meets the requirements and obligations of current laws.

Also, it is necessary that the companies benefiting from this regime dedicate themselves to:

  1. Manipulation.
  2. Process.
  3. Manufacturing.
  4. Production.
  5. Repair.
  6. Maintenance of goods.
  7. Provision of services for exploitation or re-export.

Mining extraction companies, the export or extraction of hydrocarbons, production or commercialization of weapons may not be part of this, nor may financial entities be part of the free zones regime.

Those that can be part are

  • The export processing industries are those that produce or process and can also assemble for exports or re-exports.
  • Export trade consortia, which are not producers.
  • Service companies that export them physically and legally.
  • Industries that engage in scientific investment.

The companies can be located in industrial parks or it can be companies outside the park.

Requirements to be part of the Regime

The requirements are very important, according to various regulations for companies that want to enter the free zones, these are the following:

  1. A small level of investment in fixed assets.
  2. A minimum level of jobs, this is in accordance with the conditions of the company.
  3. In some way, indicate that the productive operations in a maximum of three years from the date the regime is notified.
  4. Also indicate the precise economic activities or the developer service within the scheme.
  5. Put a percentage of National Added Value.
  6. Present the environmental brand study.

In the case of companies that are Administrators and that must also present the following documentation:

  1. Master plan.
  2. Affidavit of Financial Capacity.
  3. If the property is not owned by the company, Authorization of the owner

Benefits offered by the free zones

  1. Privilege in the export of goods necessary for the operations and administrations of the companies, such as:
  2. Machinery and equipment.
  3. Manufactures and semi-finished products.
  4. Other products that are necessary for operations.
  5. Packaging and packaging materials.
  6. Privilege to import vehicles with the following characteristics:
  7. Trucks or chassis for trucks.
  8. Pick up from 1000 to 2000 kg capacity.
  9. Vehicles with a minimum capacity of about fifteen passengers
  10. Privileges on taxes on local purchases or goods or services.
  11. Export Tax Privileges.
  12. Privilege for a period of 10 years of the taxes of Transfer of innumerable assets and Municipal Patent.
  13. Remittance Privileges.
  14. Privileges of all tributes to profits, this great benefit is awarded according to the locations and categories of companies. For location cases, this determines whether the company can be located outside or within this large area.

There is no doubt that a free zones regime is an opportunity for companies. In the same way, countries obtain profits in the economic and productive sectors.