       |
|
Free Trade Zone In the 1980s a deep sea port was constructed at Caniçal, 30 km from Funchal, where only a fishing village had existed before and it was here that an industrial free trade zone was established. The industrial free trade zone now measures some 138 hectares in size. A large number of companies engaged in such diverse activities as foodstuffs, tobacco, metal works and electrical appliances have set up there. Goods and raw materials imported into the Free Trade Zone are free of import duty, and manufactures exported from the zone are duty-free in the single market except in respect of that part of their value that can be attributed to non-EU origin. The zone is therefore ideal for 'screwdriver' assembly plants for imports into the EU. The zone also has some exemptions from EU import quotas. A further attraction of locating a factory in the industrial free trade zone is access to special subsidies provided by European Community structural funds. Currently the European Community will refund up to 50% of the training costs of apprentices in certain trades and up to 50% of the purchase costs of energy-saving technology. The Industrial Free Trade Zone has been created to receive activities which, by their nature, involve the physical movement of goods. All goods, regardless of their nature, quantity, origin and destination, may be imported into the Zone in order to be stored, repaired or transformed with few formalities and with a total exemption of import duties and quotas, provided they are not a threat to national security or public health. The Zone is being developed in three phases. Each existing plot has direct access to all basic infrastructures, such as water supply, sewerage and energy supply and telecommunications. Likewise, the Zone has at the disposal of its investors a sea terminal sufficient to guarantee the unloading of bulk cargo. The bulk cargo area has two galleries with facilities for suction and discharge of solid and liquid materials. The terminal has elevation and movement means, among which we highlight a movable crane of great capacity. It is supported by various buildings, namely for the customs authorities and the terminal's management services and personnel. Incentives and Advantages Madeira's FTZ offers a wide range of both tax and customs incentives which form a unique package, unrivalled by any other Free Trade Zone. Madeira can be of great benefit for non-European companies wishing to penetrate into the EU Single Market more easily, and for European companies aiming at reducing their operational costs and enhancing their tax efficiency. 1. Full membership in and consequent access to the European Union. Goods and raw materials imported into the Free Trade Zone are free of import duty, and manufactures exported from the zone are duty-free in the single market except in respect of that part of their value that can be attributed to non-EU origin. 2. Competitive operational costs. 3. Other. In addition, Madeira's FTZ has other characteristics which, in some cases, may also become important competitive factors:
|
|