Glossary
Terms & Glossaries of Shipping and Trading
FTZ (Foreign Trade Zone)
Foreign trade zone is a free port in a country divorced from customs authority, but under government control. Merchandise, except contraband, may be stored in the zone without being subject to import duty regulations.
Foreign Trade Zone (FTZ) is a site within the USA (in or near a U.S. Customs port of entry) where foreign and domestic goods are held until they ready to be released into international commerce, known in some countries as a free zone. If the final product is imported into the U.S., duties and taxes are not due until the goods are release into the U.S. market. Merchandise may enter a FTZ without a formal Customs entry or the payment of Customs duties or government excise taxes. In the zone, goods may be: stored; tested; sampled; repackaged or relabeled; cleaned; combined with other products; repaired or assembled, etc.
