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Foreign Trade Zone

Key Aspects of a Foreign Trade Zone (FTZ) FTZs are within the geographic limits of the U.S., but outside Customs and Border Protection (CBP) territory FTZs allow users to defer, reduce, or eliminate CBP duties: 

  • Defer: Import a product to the site; Hold it for a designated amount of time; transport within the U.S.; and pay duty only when the good exits the FTZ Site into the U.S. Market 
  • Reduce: Import different products to the site; combining these products with others, including U.S. products; transport in the U.S.; and then pay lower duties on the final product rather than the sum of the individual duties.
  • Eliminate: Import a product; and then export the product or the product combined with others; and pay no duty.