Foreign Trade Zone Act of 1934

The Foreign Trade Zone Act of 1934 established a legal framework in the United States for creating Foreign-Trade Zones (FTZs). These are designated areas near ports or transportation hubs where imported goods can be stored, processed, or assembled without being subject to certain customs duties and regulations until they leave the zone for sale in the U.S. market. The goal is to encourage international trade, reduce costs for businesses, and make U.S. companies more competitive globally by providing flexibility in handling imported goods before they enter the domestic market.