Foreign Trade Zone

A Foreign Trade Zone is a specially designed area, in or adjacent to a U.S. Port of Entry, which is considered to be outside the Customs Territory of the U.S.

The following is a partial list of the many benefits you can attain when using a Foreign Trade Zone or Subzone:

• No duty is ever paid on re-exported merchandise from a zone.
  
• If the merchandise is sold domestically, no duty is paid until it leaves the zone or zones.
  
• Generally, if foreign components are manufactured into a product which has a lower duty rate, then the lower duty applies. No duty applies to domestic content.
  
• Both foreign and domestic merchandise in a zone may be stored, repacked, manipulated, manufactured, processed, destroyed, or otherwise altered or changed.
  
• Generally, when foreign merchandise is sold to the U.S. Government, no duty is charged.

Check out information on Foreign Trade Zones in the IMEX Exchange