Foreign Trade Zones and Why They Matter in Site Selection

A key tool that has given businesses a competitive edge is the Foreign Trade Zone (FTZ). FTZs are specialized areas within the U.S. that allow companies to import, store, or process goods without paying customs duties or taxes until those goods enter the domestic market. This feature makes FTZs particularly valuable for managing cash flow, reducing operational costs, and staying competitive in an unpredictable trade environment.

What are Foreign Trade Zones?

An FTZ is a designated area within the United States where companies can import, store, process, or assemble goods without immediately incurring customs duties or taxes. The duties only apply when goods leave the FTZ and enter the U.S. domestic market. The government established these zones to promote international trade, reduce costs for businesses, and boost local economies. Companies operating within FTZs can store, assemble or even manufacture products without triggering fees or taxes until they decide to bring the goods into the U.S. market.

Click here to view the original article from the Site Selection Group.