Free Trade Zone
Also known as: FTZ, Foreign Trade Zone, Free zone, Bonded zone
A designated area where goods can be stored, processed, or re-exported without paying import duty until they enter the host country's customs territory.
A Free Trade Zone (US: Foreign Trade Zone, FTZ) is a designated geographic area within a country's borders that is treated as outside the country's customs territory for duty purposes. Goods enter and are stored, processed, manufactured, or repacked without import duty being assessed; duty applies only if and when goods leave the zone into the host country's domestic market. Major zones include US FTZ programme (300+ sites), Jebel Ali Free Zone (UAE), Colon Free Zone (Panama), Singapore Free Trade Zones, Shanghai Free Trade Zone.