GlossaryEN1 min readUpdated: Jun 18, 2026

Seattle Port Free Trade Zone

A Foreign Trade Zone (FTZ) is a U.S.

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Last updated: 18 June 2026Published: 22 November 2025

Source: https://portseattle.gov

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Logistics Concept

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Definition & Explanation

A Foreign Trade Zone (FTZ) is a U.S. Customs-designated area in which imported goods may be stored, processed, assembled, or transshipped without immediate payment of import duties. Seattle's port FTZ allows importers to defer customs liability until merchandise physically exits the zone—whether into U.S. commerce or re-exported to a third country. This mechanism lowers financing costs on inventory, facilitates repackaging and quality control, and limits duty exposure on goods that are damaged or scrapped before entry. FTZs differ from bonded warehouses in scope: they permit manufacturing and value-added operations that bonded facilities typically do not.

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Seattle Port Free Trade Zone

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