A free zone is an area that lies within the country's borders but is treated as outside the customs territory, with special incentives granted for commercial and industrial activity. In Türkiye free zones are governed by Law no. 3218.
The most important difference from a bonded warehouse is that production can be carried out in a free zone. A bonded warehouse is a storage procedure only.
What it provides
- Because it is treated as outside the customs territory, import duties do not arise
- Production, assembly and processing activities are permitted
- Goods can wait without a time limit
- Trade and storage within the zone are flexible
How it differs from a bonded warehouse
| Legal character | Free zone: a geographic area · Warehouse: a customs procedure |
|---|---|
| Production | Possible in a free zone, not in a warehouse |
| Set-up | A company is established in a free zone; in a warehouse you buy a service |
| Time limit | As a rule unlimited in both |
| Who it is for | Free zone: producer/investor · Warehouse: importer/trader |
Which suits you
If you are only going to hold the goods and then import them or send them to another country, a bonded warehouse is simpler, faster and cheaper: you do not have to set up a company, you buy the service.
If you are going to carry out production, assembly or processing, a free zone comes into consideration; but operating there involves company formation and a licensing process.
A common misconception
The idea that "a free zone is always more advantageous" is wrong. The advantage depends on the type of activity.
For an importer who only needs storage, the set-up cost of entering a free zone is far above the cost of buying a warehouse service.