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Foreign Trade Zone

A territorial enclave set up by the authorities responsible in the country, the objective of which is for the goods entering the zone to be treated as if they were outside national customs jurisdiction for the purposes of applying import duties, agricultural levies, quantity restrictions and any other tax or equivalent measure. Under certain conditions any kind of industrial, commercial and conservation operation can be undertaken in these zones, provided they are not to the detriment of normal national industrial activities.

Free Warehouses differ from Free Trade Zones in that they constitute premises of a certain size with authorization to carry out functions corresponding to their specific regulations, while the geographical area of the zones is a lot more extensive (they must be fenced off, and premises and buildings can even be constructed in them with the authorization of the customs authorities). In both cases, the entry and exit points must be guarded by the customs services to control the movement of goods, the means of transport, and the people involved. Spanish regulations were modified to adjust them to the new circumstances when the Single European Market came into effect (1/1/1993) (Ministerial Order of 2/12/1992, dictating regulations for free trade zones and free warehouses, Official State Bulletin 17/12/1992).

Last updated: 02|11|2010