What is a Free Trade Zone
“Free trade zones are specific geographical areas within a national territory, where industrial activities of goods and services or commercial activities take place, under special regulations in tax, customs and international trade matters.”
Current legislation of free trade zones originated with the Law 1004 of December 30 of 2005, which benefits all companies except those with activities related to exploitation or extraction of natural resources, financial services and residential utilities.
Types Of Free Trade Zones
- Permanent Free Trade Zones: Places where companies that develop diverse industrial, commercial and service activities are set up. Managed by one Operating User, a company authorized by the DIAN to perform this role.
- Special Permanent Free Trade Zones – Single Company: Places authorized for one company to individually develop industrial or service activities within a determined area. They need to be managed by an Operating User, a legal entity different from the company that performs activities in the free trade zone.