Trade Zone (FTZ) is an area within the geographical boundary
of the United States that is considered to be outside the
Customs territory of the U.S.
Companies may bring foreign and domestic merchandise into
zones for storage, testing, relabeling, displaying, manufacturing,
and for eventual entry into the U.S. commerce or for exportation
from the U.S.
All Customs duties and federal excise taxes are deferred while
merchandise is in a zone and, in many instances, these duties
or taxes can be substantially reduced or eliminated through
Excerpts Exports from U.S. Customs Procedures and Requirements
brochure, U.S. Customs:
duty and internal revenue tax, if applicable, are paid when
merchandise is transferred for consumption.
in a zone, merchandise is not subject to U.S. duty or tax.
Certain tangible personal property is generally exempt from
state and local ad valorem taxes.
may be exported from a zone free of duty and tax.
procedural requirements are minimal
may remain in a zone indefinitely, whether or not subject