If products from a country, such as France, is shipped to a foreign trade zone within the United States where they are stored, assembled, and then shipped out to another country, such as Brazil, the products are only subject to U.S. tariffs. No U.S. taxes are assessed on the products.

Question

Quizplus · Accepted Answer

Products from other countries can be shipped to a foreign trade zone within the United States where they can be stored and assembled there, and then be shipped to the United States or another country. Such products are not assessed duties and cannot be subjected to tariffs or quotas unless they enter the United States. That is, they are only taxed inbound, in the country where they are shipped, with no taxes on outgoing shipments.

If Products from a Country, Such as France, Is Shipped