The U.S. Foreign-Trade Zone (FTZ or Zone) is a designated area considered outside the U.S. for Customs purposes. Foreign Trade Zones are secure and enclosed areas which are operated as a public utility and located in or adjacent to a Customs port of entry.
With approval, any legal foreign and domestic material or merchandise may be moved into a FTZ. While in the FTZ, merchandise may be stored, manufactured, repackaged, exhibited or combined with domestic goods to qualify for a lower duty.
Duties may, therefore, be deferred until the merchandise leaves the FTZ and enters U.S. territory for domestic consumption. If merchandise is exported from an FTZ to another country outside the U.S., no Customs' Duty is paid.