What are foreign-trade zones?

Foreign-trade zones (FTZs) are secure areas within the US that are considered outside of US Customs territory for tariff purposes. In other words, you aren’t formally importing merchandise into the US. Therefore, you’re only responsible for duty payment if the merchandise is transferred out of the FTZ and into US commerce.

How do companies benefit from FTZs?

More than 3,000 firms in the US are using FTZs to eliminate, defer, or reduce duties. The duty savings alone can add up to millions in the span of a year. FTZ users also experience several supply chain benefits as they are able to expedite the movement of their goods. These advantages help US-based companies become more competitive in the global marketplace.