Free Zone (Noun)
Meaning
An area adjoining a port where goods that are intended for reshipment can be received and stored without payment of duties.
Classification
Nouns denoting spatial position.
Examples
- The logistics company chose to locate its warehouse in the free zone to take advantage of the duty exemptions on its international shipments.
- Several major corporations had established themselves in the free zone to minimize their customs costs.
- The Chinese business invested in the development of a massive free zone on the coast of the African nation.
- Companies operating in the free zone are granted exemptions from corporation taxes for a set period of time.
- Port authorities set up a free zone within their territory to store containers and facilitate rapid re-export of goods.