Foreign Trade Zone
A foreign-trade zone (FTZ) in the United States is a geographical area, in (or adjacent to) a United States Port of Entry, where commercial merchandise, both domestic and foreign receives the same Customs treatment it would if it were outside the commerce of the United States. Merchandise of every description may be held in the Zone without being subject to Customs duties and other ad valorem taxes . This tariff and tax relief is designed to lower the costs of U.S.-based operations engaged in international trade and thereby create and retain the employment and capital investment opportunities that result from those operations. These special geographic areas – Foreign-Trade Zones – are established "in or adjacent to" U.S. Ports of Entry and are under the supervision of the U.S. Customs and Border Protection under the United States Homeland Security Council. Since 1986, U.S. Customs' oversight of FTZ operations has been conducted on an audit-inspection basis known as Compliance Reviews, whereby compliance is assured through audits and spot checks under a surety bond, rather than through on-site supervision by Customs personnel.
There are over 230 Foreign-Trade Zone projects and nearly 400 Subzones in the United States.
Read more about Foreign Trade Zone: History
Famous quotes containing the words foreign, trade and/or zone:
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“There was a continuous movement now, from Zone Five to Zone Four. And from Zone Four to Zone Three, and from us, up the pass. There was a lightness, a freshness, and an enquiry and a remaking and an inspiration where there had been only stagnation. And closed frontiers. For this is how we all see it now.”
—Doris Lessing (b. 1919)