GlossaryEN1 min readUpdated: Jun 23, 2026

Expansion of Free Trade Zone Logistics

An importer holds goods in a free trade zone, has them kitted locally, and clears them through customs only once a specific buyer is confirmed.

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Last updated: 23 June 2026Published: 19 June 2025

Source: https://unctad.org/topic/transport-and-trade-logistics/free-zones

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Definition & Explanation

An importer holds goods in a free trade zone, has them kitted locally, and clears them through customs only once a specific buyer is confirmed. Goods stored, assembled, or repackaged inside a free trade zone are treated as being outside the national customs territory for regulatory purposes – duties and taxes become due only when cargo is released into free circulation. Logistics providers use these government-designated enclaves as strategic buffers, carrying out value-added activities such as labelling, light assembly, or repackaging without triggering immediate fiscal obligations. For freight forwarders managing multi-market supply chains, free trade zones offer flexibility in timing and location of customs clearance, which can reduce working capital requirements. Typical locations are near major seaports, airports, and land border crossings.

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Expansion of Free Trade Zone Logistics

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