Foreign Trade Zones

How They Work
Legally, a foreign trade zone (FTZ) is an area within the United States that the government considers to be its own country or outside of the U.S. Customs territory. Certain types of merchandise can be imported into a FTZ without going through formal customs entry procedures or paying import duties.

The purpose of a FTZ is to facilitate trade and increase the global competitiveness of U.S. based companies.

Benefits of FTZ Use
Some of the benefits of operating within a FTZ are obvious. At the very least, a FTZ can help you defer paying duties. Often, a company operating in a FTZ pays lower costs not only to U.S. Customs, but to its bank, insurance company, and other vendors.