Transportation
Foreign Trade Zone (FTZ)
Designated areas where imported goods can be stored, processed, or re-exported without immediate customs duties.
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Updated 2025-10-01
Definition
FTZs reduce or defer customs duties, taxes, and paperwork for companies handling international trade operations.
Overview
Overview
FTZs are used by importers, exporters, and manufacturers to improve cash flow, reduce tariffs, and facilitate global trade.
Benefits
- Deferred or reduced customs duties
- Efficient handling of imports and exports
- Streamlined logistics
Example
A company stores imported electronic components in an FTZ, assembles them, and exports finished goods without paying import duties upfront.
Tags
#FTZ#Customs#International Trade#Logistics
Related Terms
Export License
Customs Clearance
Landed Cost
