Foreign Trade Zones (FTZ)

Foreign Trade Zones (FTZs) are designated areas within a country where imported goods can be stored, processed, or manufactured with customs duties (tariffs) deferred, reduced, or eliminated. These zones facilitate international trade by offering companies flexibility and cost savings on tariffs, inventory management, and customs procedures. Essentially, FTZs allow businesses to handle goods near ports or borders more efficiently, promoting economic activity and global commerce. Goods in FTZs are not considered imported until they leave the zone for domestic sale, making them strategic hubs for international trade operations.