What is a Foreign Trade Zone (FTZ)?
An FTZ is an area located near a Customs port of entry that is considered outside Customs territory. Merchandise can enter an FTZ for storage, exhibition, assembly, manufacture, and processing, while bypassing duties and customs procedures. However, if the merchandise later enters a Customs territory for consumer use, the importer will be liable for any duties and taxes. Find information about FTZ locations in the country resource centers.
Foreign Trade Zones are federally designated areas physically located within the United States in which qualified goods may be stored or handled – and be considered to be outside the authority of Customs & Border Protection (CBP). Companies can save time and money by using an FTZ to streamline their import/export process, because goods and component parts are exempt from Customs clearance and duties until they leave the FTZ. Importers and exporters can perform a wide range of commercial activities on goods in an FTZ, including storing, distributing, assembling, processing, manufacturing, testing, repackaging, repairing, displaying, destroying, inspecting, and labeling.
