Foreign Trade Zones (FTZs), also referred to as Free Trade Zones, are specific areas within the United States where imported goods are considered to be outside U.S. Customs territory. This means businesses can store, assemble, or manufacture products without immediately paying duties or taxes. Duties are only paid when goods leave the zone and enter U.S. commerce if they’re exported or destroyed, no duties are due. For importers, FTZs offer a strategic way to defer, reduce, or even eliminate duty and tax costs, making them a valuable tool for improving cash flow and reducing operational expenses.
