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Why do companies use foreign-trade zones?

April 26, 2017companies foreign-trade zones

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Why do companies use foreign-trade zones?

1 Answer

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10 Posted

To maintain the cost competitiveness of their U.S.-based operations vis-a-vis their foreign-based competitors. For a company, zone status provides an opportunity to reduce certain operating costs associated with a U.S. location that are avoided when operating from a foreign site.