GlossaryEN1 min readUpdated: Jun 26, 2026
Free Trade Zone (FTZ) in Port
Unlike a standard port area where arriving goods are immediately subject to customs clearance, a port free trade zone (FTZ) suspends import duties, excise taxes, and VAT until cargo leaves the designated perimeter and enters the domestic customs territory—or waives them entirely on re-export.
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Source: https://www.durban.gov.za
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Unlike a standard port area where arriving goods are immediately subject to customs clearance, a port free trade zone (FTZ) suspends import duties, excise taxes, and VAT until cargo leaves the designated perimeter and enters the domestic customs territory—or waives them entirely on re-export. Within the zone, goods may be stored, repackaged, processed, or consolidated for onward shipment. Freight forwarders and trading companies use port FTZs primarily to defer duty costs and to manage transshipment cargo whose final destination is not yet confirmed at the time of arrival. In EU law, the equivalent mechanism is the free zone procedure under the Union Customs Code (UCC); rules vary considerably outside the EU.
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