WHAT IS A GENERAL-PURPOSE FOREIGN-TRADE ZONE?
Foreign trade zones (FTZs) are areas within this
country where foreign and domestic goods are not within U.S.
Customs Territory. Users are thereby exempt from paying
duty or federal tax while goods remain in the zone or are
exported.
A general-purpose foreign-trade zone usually is
located at an industrial park, port authority, or adjacent to an
airport.
Under FTZ procedures, 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.
When merchandise is removed from a foreign-trade
zone, Customs duties may be eliminated if the goods are then
exported from the United States. If the merchandise is
formally entered into U.S. commerce, Customs duties and excise
taxes are due at the time of transfer from the foreign-trade
zone.
Merchandise entering a zone may be:
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Assembled
-
Displayed
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Stored
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Tested
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Repaired
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Manufactured
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Sampled
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Manipulated
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Salvaged
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Relabeled
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Mixed
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Destroyed
-
Repackaged
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Cleaned
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Processed
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last update:
02/11/08
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