# free zone (customs-free zone)

*Last updated: 2026-06-26*

> Unlike a customs warehouse – an approved storage facility tied to a specific licensed operator within the regular customs territory – a free zone is a geographically delimited area governed by its own legal regime, in which customs duties, import taxes, and certain regulatory controls are suspended or substantially reduced.

Unlike a customs warehouse – an approved storage facility tied to a specific licensed operator within the regular customs territory – a free zone is a geographically delimited area governed by its own legal regime, in which customs duties, import taxes, and certain regulatory controls are suspended or substantially reduced. Goods may be stored, processed, assembled, and transhipped within the zone without triggering duty liability. Free zones are typically sited at seaports, airports, or land border crossings, enabling businesses to consolidate international cargo flows or re-export goods without formally releasing them into the domestic market. Customs liability arises only when goods leave the zone and enter free circulation. Customs warehousing, by contrast, depends on an authorised warehouse keeper and does not constitute a separate territorial jurisdiction.

**Source:** [https://ec.europa.eu/taxation_customs/business/calculation-customs-duties/free-zones_en.htm](https://ec.europa.eu/taxation_customs/business/calculation-customs-duties/free-zones_en.htm)

## Quick Facts

| Property | Value |
|---|---|
| Term | free zone (customs-free zone) |
| Language | EN |
| Word count | 126 |
| Last updated | 2026-06-26 |
| Source | https://ec.europa.eu/taxation_customs/business/calculation-customs-duties/free-zones_en.htm |

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