In this article, we will discover Free Trade Zones in the Czech Republic. What are the advantages of trading in free trade zones? How to get Czech Free Trade License?
What is Free Trade Zone?
A free-trade zone (FTZ) is a class of uncommon financial zone. It may be a geographic range where goods may be imported, put away, dealt with, made, or reconfigured and re-exported beneath particular traditions control and for the most part not subject to the traditional obligation. Free exchange zones are by and large organized around major seaports, universal airplane terminals, and national frontiers—areas with numerous geographic focal points for the trade.
Free zones are established in a number of cities in the Czech Republic. Any products traded into the free zone are absolved from duty and VAT. The exclusion to remains in the event that the products are utilized within the manufacture of the last item that’s traded out of the country once more. Duty is as it were payable when the products are expelled from the zone and into the Czech economy.
Economic overview in Czech Republic
Amplifying the definition of cities to their commuting zones, the Czech Republic has 16 useful urban areas (FUAs), which account for about half of the full populace.

The Czech Republic has 16 functional urban areas;
Source:https://www.oecd-ilibrary.org/sites/9789264300958-12-en/index.html?itemId=/content/component/9789264300958-12-en
The Prague, Brno, and Ostrava FUAs are the biggest. With more than 500 000 people each, they fit into the definition of metropolitan regions. They account for 41% of GDP, 31% of work, and 30% of add up to populace. This proposes they constitute the motor of the country’s financial development. In this way moving forward efficiency and competitiveness in these three regions would have positive repercussions across the country. Prague’s FUA envelops the region of 435 districts of different sizes, Brno’s 245 and Ostrava’s 67.
Prague is by distant the biggest city, with 1.27 million people in 2016. It produces about a quarter of GDP and its expendable salary per capita is 30% higher than the national normal (CZSO, 2016). The benefits segment accounts for more than 80% of its esteem included. The biggest cities are also Brno (pop. 377 000) and Ostrava (pop. 292 000).
Advantages of trading in the Free Zone in Czech Republic
• Political and economic stability
• Investment protection
• Non-discrimination
• Repatriation of profits
• Free entry and exit
• Protection of property rights
Czech Free Trade Licence
Concurring to the Czech Trade Licensing Act (Act No. 455/1991 Coll.), the trade movement is conducted methodically, independently, utilizing one’s possess title, on one’s claim obligation, with a see to form benefit and beneath the conditions laid down beneath this law. The different callings requiring an exchange permit are recorded in attaches 1- 4 of the Czech Exchange Authorizing Act. You’ll discover common data in our article Steps for procuring a Czech Trade Licence.
The Czech Trade Licensing Act separates between notifiable exchanges, where the permit is allowed once the concurred conditions are met and the Czech Trade Permit Office is informed (Czech Free Trade Permit), and concessionary exchanges, which require state authorization – i.e. the allowing of a concession; this can be not agreed naturally.
Import licenses are not required for most products, in spite of the fact that certain things are still subject to a programmed permitting framework, including:
• steel
• electric power
• crude oil
• natural gas
• some other chemicals
• firearms
• narcotics
• some agricultural and food products.
Gurcan Partners is a Law and the Consulting firm. Our professional team can assist you at all steps of business registration in Free Trade Zone in Czech Republic.
Germany as the Czech Republic’s main trading partner
The German economy includes a trade overflow vis-à-vis all its major exchanging accomplice nations but China. This just affirms Germany’s status as the “export engine” of the euro region, i.e. it’s a key part on the European scale. The strongly export-oriented Czech economy’s joins with the German economy are subsequently pivotal.
Within the last five years, Germany has accounted for more than 29% of Czech outside trade turnover. Out of all its exchanging accomplices, the Czech Republic’s exchange excess with Germany has also been the most elevated within the same period. This surplus has risen consistently and presently surpasses the Czech Republics in general exchange overflow. The interdependency of Czech merchandise sends out and German products imports and trades is exceptionally tall. The same can be watched for Czech merchandise imports as a result of solid collaboration imports. The share of merchandise trades to Germany was 31.6% of normal, with the most noteworthy share (32.5%) having been recorded in 2009, i.e. amid the most profound stage of the budgetary emergency.
Gurcan Partners is a Foreign Economic Relations Board, Hungary Business Council, Association of German Chambers of Industry and Commerce, and International Chamber of Commerce member international law and consultancy firm.
All rights reserved. All rights of the Free Trade Zones in the Czech Republic article belong to Gurcan Partners. The author has no responsibility for the information in this article. This article is prepared just to inform.
Marta Nowak
Gurcan Partners Prague Office
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