A Foreign Trade Zone (FTZ) is an area within the United States that the government considers outside the country, or at least, outside of the U.S. Customs territory. Certain types of merchandise can be imported into an FTZ without going through formal customs entry procedures or paying import duties.
Operating within an FTZ allows a business to potentially defer paying duties. The company will also face lower costs, not at U.S. customs, but at its bank, insurance company, and other vendors.
Follow the links below to learn more about duty-deferment programs.