A Foreign Trade Zone (FTZ) represents a designated region within the United States where goods, whether they originate domestically or internationally, are treated as though they are outside the U.S. market for Customs purposes. 

This unique status means that items stored within an FTZ are exempt from tariffs (customs duties) and certain taxes, offering significant financial benefits to U.S. companies involved in global trade.

Beyond duty savings: the multifaceted advantages of FTZs

While reduced customs duties are a cornerstone advantage, FTZs offer a broader spectrum of benefits that can transform your business operations:

• Enhanced Competitiveness: By lowering operational costs, FTZs allow U.S. businesses to compete more effectively with foreign manufacturers, potentially leading to increased market share and profitability.
• Streamlined Supply Chains: FTZs offer flexibility in managing duty-paid and duty-deferred inventory within the zone. This facilitates efficient just-in-time manufacturing processes and reduces overall logistics costs.
• Job Creation and Economic Development: FTZs act as catalysts for economic growth by attracting businesses and fostering domestic production. This leads to increased job creation within the zone and surrounding communities.
• Investment Magnet: The combination of reduced costs, streamlined procedures, and a business-friendly environment makes FTZs highly attractive to foreign and domestic investors. This fosters increased capital inflow and economic activity within the zone.

Interested in learning more?

Ready to explore the possibilities of FTZs in greater detail? Watch our informative video for a deeper dive into the advantages and practicalities of utilizing FTZs to propel your business forward.