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are interested since they can take advantage of the delay in paying<br />
the tariffs while the goods are stored in the <strong>zone</strong>.<br />
- Lower tariffs<br />
Bringing separate parts of various articles to the <strong>free</strong> <strong>zone</strong>, the<br />
producers or assemblers of the inverted tax goods (higher tariffs are<br />
levied on separate parts than on the whole item they are part of) are<br />
charged with lower tariffs as a result of the final cost that will result<br />
lower.<br />
- Avoiding restrictions of quotas<br />
Import quotas in the <strong>free</strong> <strong>zone</strong> are usually not applicable to the<br />
goods s tored within the <strong>zone</strong>. For instance, in Singapore, when an<br />
importer has shipped in more goods than permitted, he has all the<br />
facilities to store his merchandise in the <strong>free</strong> <strong>zone</strong> and is not obliged<br />
to follow the permissible norms of merchandising as in the case of<br />
normal trade regions (where there are no <strong>free</strong> <strong>zone</strong>s). He is<br />
also<br />
allowed to use the extra quantity of goods (above the quota) to<br />
produce products that are below the permitted quotas or he can wait<br />
until the next term for the new quota. In Malaysia, another approach<br />
is applied, where quota products are transformed into quota-<strong>free</strong><br />
ones. For instance, if a certain product<br />
is above the quota, the excess<br />
can<br />
be stored in a <strong>free</strong> <strong>zone</strong> where there are no laws on quotas.<br />
Automatically, no excess will be as above the quota.<br />
- Labelling the product in the country where it<br />
is produced<br />
The imported parts, which will be imported in the <strong>free</strong> <strong>zone</strong> and<br />
participate<br />
in the structural architecture of a product or machinery,<br />
etc.,<br />
will lose their original value assuming the label of the <strong>zone</strong><br />
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