# Free Trade Zone (FTZ)

*Last updated: 2026-06-26*

> Free trade zones (FTZs) are legally demarcated areas where goods may be imported, stored, processed, repackaged, or re-exported without incurring customs duties, provided they are not released into the host country's domestic market.

Free trade zones (FTZs) are legally demarcated areas where goods may be imported, stored, processed, repackaged, or re-exported without incurring customs duties, provided they are not released into the host country's domestic market. Duty liability is triggered only upon entry into the customs territory; goods re-exported from an FTZ leave duty-free. Freight forwarders and importers use FTZs to defer duty payments, lower landed costs, and consolidate shipments ahead of final distribution. Unlike a bonded warehouse, an FTZ typically permits a broader range of value-added activities, including assembly and light manufacturing. Many major trading nations maintain FTZs at key ports and logistics hubs to attract international cargo flows.

**Source:** [https://www.wcoomd.org](https://www.wcoomd.org)

## Quick Facts

| Property | Value |
|---|---|
| Term | Free Trade Zone (FTZ) |
| Language | EN |
| Word count | 107 |
| Last updated | 2026-06-26 |
| Source | https://www.wcoomd.org |

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