A specially designated area in or near a U.S. customs port of entry that allows resident companies to import materials and components from foreign counties; assemble, process, manufacture, or package them, and then ship the finished product back out while either reducing or eliminating tariffs and duties is a:
A) empowerment zone.
B) foreign trade zone
C) business incubator.
D) trading area.

Question

Quizplus · Accepted Answer

This is a description of a foreign trade zone, which is a secure area under U.S. Customs and Border Protection supervision that is considered outside of U.S. territory for tariff and customs purposes. Companies can bring in foreign goods without paying tariffs and duties until the goods are moved to U.S. Customs territory for consumption. The goods can be stored, assembled, processed, or used in manufacturing within the zone, and companies can choose to pay the tariff and duties only when the final product is exported from the zone to a foreign country or for consumption within the U.S.

A Specially Designated Area in or near a U