Which of the following is true about free trade zones (FTZs) ?
A) In an FTZ, payment of import duties is postponed until the product leaves the FTZ area and enters the country.
B) More than 500 FTZs operate throughout the world, processing imported goods.
C) An FTZ is, in essence, a taxable enclave and considered part of the country as far as import regulations are concerned.
D) When an item leaves an FTZ and is imported officially into the home country of the FTZ, all duties and regulations are imposed.
E) Utilizing FTZs typically control price escalation resulting from the layers of taxes, duties, surcharges, and freight charges.
Correct Answer:
Verified
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