FTZ (Foreign Trade Zone)
Category: Customs
Also searched as: Foreign Trade Zone
Definition (plain English)
A designated U.S. zone where foreign goods can be admitted, stored, assembled, processed, or re-exported under special customs procedures.
Why it matters commercially
FTZ use can defer duty, improve re-export economics, and manage tariff exposure, but it requires disciplined inventory and customs controls.
Example
A company admitted components into an FTZ, assembled kits, and paid duty only when finished goods entered U.S. commerce.
Common mistake
Assuming an FTZ is just cheap warehousing without admission, inventory control, reporting, and release obligations.
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