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Trading Terms

Foreign trade zone (also FTZ)

A foreign trade zone, also known as a free trade zone or bonded warehouse, is a designated area near ports of entry where imported goods can be stored and manipulated without payment of customs duties. This allows for the storage, sale, and processing of foreign and domestic merchandise, such as raw materials and finished goods, before they are either re-exported or brought into the country. Duties are only imposed when the goods leave the zone and enter an area under the jurisdiction of the national customs authority. These zones play a crucial role in facilitating international trade and promoting economic growth.
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