What is a Foreign-Trade Zone?

A foreign-trade zone (FTZ) is a physical location that has been designated by the FTZ Board as an area where a user can gain access to the benefits of the FTZ Program. The foreign-trade zone site while located within the United States is considered outside the Customs Territory of the U.S. It is the distinction of being considered outside the Customs Territory of the U.S. that affords the opportunity for FTZ benefits.


Merchandise located in a FTZ is still considered to be part of international commerce. It is only once the merchandise leaves the FTZ (either in the same condition as imported or further manufactured), that normal tariff and Customs regulations pertaining to the entry of goods are applied.

Show All Answers

1. What is a Foreign-Trade Zone?
2. What is the Foreign-Trade Zone program?
3. What are the types of Foreign-Trade Zones?
4. What companies might benefit from using FTZ procedures?
5. What is required for activation of a FTZ by customs?