Foreign Trade Zone

E572706

A Foreign Trade Zone is a designated area within a country, typically near a port or airport, where imported goods can be stored, processed, or manufactured under special customs regulations and reduced tariffs before entering domestic commerce.

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Statements (50)

Predicate Object
instanceOf customs territory
special economic zone
trade facilitation measure
appliesTo goods in transit
goods intended for re-export
imported goods
differsFrom domestic customs territory where duties are payable upon import
enables avoidance of duties on waste, scrap, or re-exported goods
bonded warehousing of goods
deferral of customs duties until goods enter domestic commerce
reduction of tariffs based on final product classification
value-added activities such as assembly and packaging
hasBenefit improved cash flow for companies through duty deferral
increased competitiveness of domestic operations in global supply chains
reduced inventory carrying costs related to customs duties
hasCharacteristic allows manufacturing activities using imported inputs
allows processing of imported goods under customs control
allows storage of imported goods without immediate payment of customs duties
facilitates re-export of goods without entering domestic commerce
located within national borders but treated as outside the customs territory for certain purposes
may offer duty deferral
may offer duty elimination on re-exports
may offer reduced tariffs
often located near airports
subject to special customs regulations
typically situated near seaports
hasDefinition a designated area within a country where imported goods can be stored, processed, or manufactured under special customs regulations before entering domestic commerce
hasPurpose to attract foreign investment
to enhance logistics efficiency
to promote international trade
to reduce customs-related costs for businesses
to support export-oriented manufacturing
hasRisk potential for customs non-compliance if controls are weak
mayInclude distribution centers
manufacturing facilities
warehouses
regulatedBy national customs authorities
national trade laws
specific zone legislation in each country
relatedTo bonded warehouse
export processing zone
free trade zone
special economic zone
requires authorization from government authorities
compliance with customs security and record-keeping requirements
usedBy exporters
importers
logistics companies
manufacturing firms
multinational corporations

Referenced by (1)

Full triples — surface form annotated when it differs from this entity's canonical label.

Port of Toledo designatedAs Foreign Trade Zone