Warehouse & Logistics Encyclopedia
Your comprehensive guide to warehouse, logistics, and supply chain terminology. Explore over 100+ industry terms with detailed explanations and practical insights.
Foreign Trade Zone (FTZ)
Designated areas where imported goods can be stored, processed, or re-exported without immediate customs duties.
Definition
FTZs reduce or defer customs duties, taxes, and paperwork for companies handling international trade operations.
Overview
FTZs are used by importers, exporters, and manufacturers to improve cash flow, reduce tariffs, and facilitate global trade.
Role
Designated areas where imported goods can be stored, processed, or re-exported without immediate customs duties.
Focus
FTZs are used by importers, exporters, and manufacturers to improve cash flow, reduce tariffs, and facilitate global trade.
Example
A company stores imported electronic components in an FTZ, assembles them, and exports finished goods without paying import duties upfront.
Benefits
- Deferred or reduced customs duties
- Efficient handling of imports and exports
- Streamlined logistics
FAQs
Q: Can you give an example of Foreign Trade Zone (FTZ)?
A: A company stores imported electronic components in an FTZ, assembles them, and exports finished goods without paying import duties upfront.
Q: What are the key benefits of Foreign Trade Zone (FTZ)?
A: Deferred or reduced customs duties. Efficient handling of imports and exports. Streamlined logistics.