Foreign Trade Zone (FTZ)

A Foreign Trade Zone (FTZ) is an area or zone set aside at or near a port or airport under the control of the US Customs Service, for holding goods duty-free pending customs clearance.

Firms use FTZ to import, store, assemble, manufacture, and export products duty-free. The benefits of an FTZ can include:

  1. Reduced tariffs.
  2. Increased competitiveness.
  3. Enhanced flexibility.
  4. Streamlined operations.

Types of activities are permitted in an FTZ:

  • Manufacturing.
  • Assembly.
  • Packaging.
  • Cleaning.
  • Repairing.
  • Examining etc.

In order to take advantage of the benefits available in an FTZ, companies must first go through the application process and be approved by the Board of Directors of the Foreign Trade Zones.

Related Links

About Foreign-Trade Zones and Contact Info – U.S. Customs and Border Protection
Foreign Trade Zone (FTZ) – Flexport Glossary
Foreign-trade zones of the United States
Foreign Trade Zones
FTZ9 – What is a Foreign-Trade Zone?
Foreign-Trade Zones (FTZs)
Foreign Trade Zones – Economic Development Partnership of North Carolina

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