What is a Customs Exempt / Customs Free Zone ?
A Customs Exempt Zone belongs to state A from the point of view of state law, submits to state B, however, as far as customs sovereignty is concerned. It is therefore exempt of state A’s customs jurisdiction.
A Customs Free Zone belongs to state A from the point of view of state law, submits to its customs sovereignty, however, only partially or not at all. Goods can be imported into it or stored in it without the need to pay customs duties.