What is a Foreign Trade Zone?
In the U.S., a foreign trade zone is a site where foreign and domestic goods are held until they ready to be released into international commerce.
FTZ designation includes several benefits:
- Foreign goods admitted to an FTZ are not subject to duties and excise taxes
- Payment of duties are deferred until goods enter into commerce of the U.S.
- Goods may be imported into or exported from, a zone without payment of duty and taxes
- Lower insurance rates due to higher customs security requirements.
Foreign and domestic merchandise permitted in an FTZ may be:
- stored, sold, exhibited
- broken-up, repacked, assembled
- distributed, sorted, graded
- cleaned, destroyed, manufactured
- mixed with foreign/domestic merchandise.
For further details on the history and the role of FTZ in the U.S., refer to the U.S. Customs FTZ Brochure.
FTZ Vocabulary
The following terms are used in the description of FTZ:
| CF214 | U.S. Customs' form application for FTZ admission. |
| CF216 | U.S. Customs' form application for FTZ Activity Permit. |
| CF7512 | U.S. Customs' form application for transportation entry and manifest of goods subject to customs inspection and permit. |
| HTSUS | U.S. Harmonized Tariff System. Refers to the system of unique codes/numbers used to identify/classify goods entering an FTZ. |
| PF | Zone Status, Privileged Foreign. Merchandise appraised for duties/taxes at time of application into FTZ (not for what it might become later via manufacturing). |
| NPF | Zone Status, Non-Privileged Foreign. Merchandise appraised for duties/taxes at time of transfer to Customs territory/NAFTA. |
| ZR | Zone Status, Zone Restricted - brought into zone for purpose of exportation, destruction, or storage- considered exported and cannot be returned to the Customs territory- may NOT be manipulated, manufactured, processed or assembled in a zone. |
| DUS | Zone Status, Domestic U.S. - grown, produced, manufactured in U.S. on which all taxes have been paid- previously imported merchandise on which all duties and taxes have been paid- previously admitted into US free of duty. |
| DPR | Zone Status, Domestic - Puerto Rico |
FTZ Handling in (Undefined variable: Primary.Product1)
For a list of the core applications associated with the FTZ module in VL, see FZ - Foreign Trade Zone.
For instructions on how to use the FTZ module in (Undefined variable: Primary.Product1) , see FTZ Setups and Procedures.
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To walk through a series of integrated workflows relating to FTZ setups and procedures, click Was this article helpful?
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