The FTC Act of 1934 created ___________ to encourage exports from foreign countries. The act allowed for the storage of goods within the U.S. boundaries without payment until the goods passed to the buying company.
A) special trade zones
B) tax-free zones
C) transit zones
D) foreign trade zones
E) free tariff zones

Question

Quizplus · Accepted Answer

The creation of foreign trade zones was part of the FTC Act of 1934, which aimed to encourage exports from foreign countries by allowing the storage of goods within the U.S. boundaries without payment until the goods passed to the buying company. These zones are designated areas, typically near ports of entry, where foreign and domestic goods can be stored, manipulated, or manufactured without being subject to customs duties or other taxes. This allows companies to defer, reduce, or even eliminate customs duties on imported goods, increasing their competitiveness in the global market.

The FTC Act of 1934 Created ___________ to Encourage Exports