What is a Foreign Trade Zone

A U.S. Foreign-Trade Zone (FTZ or Zone) is a designated area which, for Customs purposes, is considered outside the United States. Nearly any imported merchandise can be brought into a Zone for almost any kind of manipulation, duty-free. It is a secure area located at or near a Port of Entry.

In an FTZ, merchandise may be:

• Assembled , manufactured or processed
• Sampled or Mixed
• Relabeled, Repacked or Repaired
• Destroyed

HISTORY

Foreign Trade Zones were created in the U.S. on June 18, 1934, as part of the New Deal.

The purpose was to encourage and expedite U.S. participation in international trade and to defer payment of duties until goods are entered into the commerce of the U.S.

TYPES of FTZs

• General Purpose Zone (GPZ)
  This type of zone is established for multiple activities by multiple users. Storage, distribution, testing, repackaging and repair are some possible activities in a GPZ. Processing or manufacturing in a GPZ requires the permission of the federal Foreign Trade Zones Board.
  See FTZ maps for New Bedford’s GPZ locations.
• Sub-Zone
  This is a special-purpose zone established as part of a zone project for a limited purpose that cannot be accommodated within an existing general-purpose zone. It must be sponsored by a grantee of a general-purpose zone. An example is an already established company who meets the qualifying criteria and whose facility is not located in the general-purpose zone area.