United States’ Foreign-Trade Zones

Are you aware that the United States has established Foreign-Trade Zones? These are areas that have been secured under U.S. Customs and Border Protection, generally near ports of entry. These FTZ have been established to facilitate business transactions and increase the flow of goods in and out of the country.

The Advantages of a Free-Trade Zone

Businesses who have an interest in low cost country sourcing should make using FTZ a priority. Both foreign and domestic merchandise can be moved into a zone for the purpose of storage, assembly, manufacturing, and processing. While the merchandise remains in the zone, it is not subject to a U.S. duty or excise tax. It may remain in the zone indefinitely.

Once the goods are moved out of the zone for domestic consumption, the importer can choose to pay duties at the rate of the original materials or the finished product. Goods that are headed for export from the zone are considered free of duty and excise tax.

Where To Find a Free-Trade Zone

The United States has 186 active Free-Trade Zones. Many are located around port cities, such as Los Angeles, Baltimore, and Chicago. However, there are FTZ found inland as well, often near airports. States such as Colorado, Arizona, and Nebraska have established FTZ to boost and support business. 

The main activities carried out in the FTZ are production and manufacturing, followed by warehousing and distribution. Corporations that work in a Free-Trade Zone obtain permission to build industrial parks to suit their needs. Therefore you will find storage facilities, factories, and packing plants in different FTZ. 

Industries That Utilize Free-Trade Zones

Just about any industry can be found in FTZ, but the most common are oil, vehicles, consumer electronics, machinery and equipment, pharmaceuticals, textiles, and metals. These industries have found the benefits of the FTZ.


This entry was posted on Tuesday, December 1st, 2020 at 7:39 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Comments are closed.