GlossaryEN1 min readUpdated: Jun 26, 2026
Free Trade Zone (FTZ)
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.
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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.
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