Foreign-Trade Zone (FTZ)
Definition
A designated site, licensed by the federal Foreign-Trade Zones Board and activated by CBP, where approved businesses may use special customs procedures for foreign merchandise. Duties may be deferred while merchandise remains in the zone, and goods re-exported from the zone may avoid U.S. duties. Simple proximity to a zone does not grant these benefits. Merchandise must be formally admitted into an activated site.
Example
For example, imported merchandise admitted to Hawaiʻi Foreign-Trade Zone No. 9 in Honolulu may remain under FTZ procedures until it enters U.S. commerce or is re-exported.