What is a Free Trade Zone?

Free trade zones are officially designated areas, which by U.S. Customs laws, are considered outside of the Customs Territory of the United States.
Foreign and domestic merchandise may be admitted into zones for operations such as storage, exhibition, assembly, manufacture and processing, without being subject to formal Customs entry procedures, the payment of Customs duties or the payment of federal excise taxes.
 
Companies which operate out of free trade zones often defer, reduce or even eliminate tariffs and taxes.
 
Some of the benefits free trade zones offer include:

• Eliminating duties and quota charges on merchandise exported
• Deferring Customs duties and federal excise tax on imports
• Delaying duties and taxes until merchandise is transferred into US Customs territory
• Storing goods indefinitely without paying duties
• Not paying duties on waste  

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