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Foreign Trade Zone - FTZ

An FTZ is an area within the United States, in or near a U.S. Customs port of entry, where foreign and domestic merchandise is considered to be outside the country, or at least, outside of U.S. Customs territory. Certain types of merchandise can be imported into a Zone without going through formal Customs entry procedures or paying import duties. 

This enables companies to defer duty payments on merchandise until it is entered into U.S. If the merchandise is subsequently re-exported from the FTZ, no Customs entry is filed, and no duty paid on the merchandise.

A U.S. Foreign-Trade Zone offers substantial advantages to U.S.-based manufacturers and distributors, many of which are not available under free trade zone regimes abroad. In general, merchandise in a zone may be:

  • Assembled 

  • Exhibited 

  • Manipulated 

  • Manufactured 

  • Mixed or assemble 

  • Relabeled & repackaged 

  • Repaired 

  • Stored and more

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