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Everything about Free Trade Zone (FTZ) Explained

Shipping Route

A Free Trade Zone (FTZ) is a designated area where goods can be landed, handled, manufactured, or reconfigured without the intervention of customs authorities. FTZ plays a critical role in international trade.

How Does FTZ Work?

Goods entering an FTZ are considered outside the customs territory. This means import duties and taxes are not levied until the goods leave the zone for domestic consumption.

Key Benefits of FTZ

1. Duty Deferral: Pay duties only when goods enter the domestic market.

2. Cost Reduction: Eliminate warehouse storage costs in some cases.

3. Trade Facilitation: Streamlined customs procedures for re-exports.

4. Manufacturing Advantage: Goods can be assembled or processed duty-free.

Canter Logistics can help you leverage FTZ advantages for your shipments from China. Contact us to learn more.

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