A foreign trade zone is where businesses can import goods for processing, assembly, or warehousing, without paying duties until the finished products are sent to the market.

Question

Quizplus · Accepted Answer

A foreign trade zone (FTZ) is a designated area within a country where businesses can import goods without paying duties until the finished products are shipped out to the market. These zones are usually located near ports and are designed to encourage international trade by reducing the costs associated with customs clearance and import taxes. Within a foreign trade zone, businesses can engage in manufacturing, processing, assembly, and warehousing activities, as well as conduct other types of value-added operations. Once the finished goods are sent to the market, they are subject to the same duties and taxes as other imported products.

A Foreign Trade Zone Is Where Businesses Can Import Goods