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Foreign Trade Zone (FTZ)

A foreign trade zone, or FTZ, is a designated area in the United States where goods imported into the country can be stored, assembled, manufactured, or processed before being exported or sold in the domestic market. They are designed to encourage foreign trade and investment by providing a location where companies can operate with reduced regulations, duties, and taxes. This can help companies reduce costs, increase efficiency, and become more competitive in the global marketplace. FTZs are subject to U.S. Customs and Border Protection (CBP) oversight, but they are considered outside the jurisdiction of U.S. customs laws until the goods are imported into the domestic market. This means that goods can be stored in an FTZ without being subject to duties or taxes until they are ready to be sold in the U.S. market.

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