Foreign Trade Zone (FTZ)

Shipping Terms Glossary

C

Foreign Trade Zone (FTZ)

A Foreign Trade Zone (FTZ) is a secure geographical area adjacent to a U.S. Port of Entry that is considered to be outside of CBP territory. Merchandise foreign to the U.S. won't be subject to CBP procedures and duty payments until the goods leave the FTZ and enter the U.S. The United States enacted the Foreign Trade Zone Act of 1934 to allow local manufacturers to compete with foreign enterprises.