What is a Free Trade Zone?

November 12, 2024
5:48 pm

A Free Trade Zone is a designated area of land governed by a Special Customs Regime established by law. It enables closer access to international markets by covering multiple countries from a single supply point, thereby streamlining international trade and distribution operations.

Country-Level Benefits of Free Trade Zones

Generation of both direct and indirect jobs
Increased foreign and domestic investment, improving the country’s competitiveness on the global stage
Expansion of export, re-export, and import activities, reinforcing key industries
Technology transfer

Advantages for Companies Operating Within a Free Trade Zone

1. Streamlined Logistics: Faster, centralized, and more efficient supply chain operations.

2. Attractive Tax Incentives:

• VAT exemptions
• Income Tax (ISR) benefits
• Duty-free import/export on qualifying goods

3.Lower Operational Expenses:

• No fixed warehousing fees
• Reduced technology costs through built-in inventory control solutions
• Zero infrastructure investment required
• Decrease in capital expenditure on equipment
• Reduction in labor-related costs

4. Expansion of international trade, supporting national economic development

Free Trade Zone – Guatemala

Strategically positioned near Guatemala City’s key industrial zone, it offers flexible storage solutions that optimize operational efficiency and reduce costs. Its location also simplifies the handling of regional inventories and supports import, export, and re-export activities across Central America, the Caribbean, and broader international markets.

We are pioneers in implementing high standards in cargo management and facility operations, combined with tailored customer service.

The Cropa Free Trade Zone includes: