What is free trade zone in SAP SD - Sales and Distribution?

SAP Term: free trade zone

• Component: SD

• Component Name: Sales and Distribution

• Description: A place designated by the Customs Service as outside a customs territory, permitting duty-free storage, display, and manipulation of imported goods.

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• Key Concepts: 
  A free trade zone (FTZ) is a designated area within a country that is exempt from certain taxes and duties. It is a special economic zone that allows goods to be imported, processed, and re-exported without the need for customs clearance. This makes it an attractive option for businesses looking to reduce costs and increase efficiency.
  
  How to use it: 
  In SAP Sales and Distribution (SD), free trade zones are used to manage the import and export of goods. The system allows users to set up FTZs, define their parameters, and manage the movement of goods in and out of the zone. This includes tracking the status of shipments, calculating taxes and duties, and managing inventory levels.
  
  Tips & Tricks: 
  When setting up an FTZ in SAP SD, it is important to ensure that all relevant information is entered accurately. This includes the name of the FTZ, its location, and any applicable taxes or duties. Additionally, it is important to keep track of inventory levels in order to ensure that goods are not overstocked or understocked.
  
  Related Information: 
  For more information on free trade zones in SAP SD, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed instructions on how to set up and manage FTZs in SAP SD.