Products remaining in a free trade zone (also called a foreign trade zone) are not subject to duties or taxes until they are reshipped out of the zone into the country of destination. However, products in the FTZ cannot be processed, assembled, sorted or repackaged before reshipment.

Question

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Products in a free trade zone can be processed, assembled, sorted, or repackaged before being reshipped, allowing businesses to add value without incurring duties or taxes until the goods enter the domestic market.

Products Remaining in a Free Trade Zone (Also Called a Foreign