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Foreign-Trade Zone (FTZ)
Definition
A foreign-trade zone (FTZ) is a site licensed by the Foreign-Trade Zones Board where imported goods can be stored, handled or manufactured under special customs procedures, with duty deferred until they enter U.S. commerce.
What it means
Merchandise in a zone is treated as outside U.S. customs territory for formal entry purposes.[1] The FTZ Act lets goods in a zone be stored, repacked, assembled, manipulated or manufactured, then exported, destroyed or entered into the U.S.[2]
Foreign-Trade Zone 49 (Newark/Elizabeth) is granted to and operated by the Port Authority of New York and New Jersey, and was approved on April 6, 1979.[3] Being inside a zone's service area does not make a building part of the zone. The comparison with bonded warehouses is in bonded warehouse vs. FTZ.
Related
Related terms
- Bonded WarehouseA bonded warehouse is a CBP-approved facility where imported goods are stored under customs control before...Glossary
- Customs BondA customs bond is a financial guarantee filed with CBP that the importer will pay duties, taxes and charges...Glossary
- Importer of RecordThe importer of record (IOR) is the party responsible for an import entry: making sure it is correct and that...Glossary
Sources
- International Trade Administration, Foreign-Trade Zones Board, “Foreign-Trade Zones (FTZs),” Government guidance. Accessed September 2026.
- Legal Information Institute, Cornell Law School, “19 U.S. Code § 81c, Exemption from customs laws of merchandise brought into zone,” Federal statute. Accessed September 2026.
- Foreign-Trade Zones Board, OFIS, “Zone Details: Foreign-Trade Zone 49, Newark/Elizabeth,” Government database. Accessed September 2026.
General operational information, not legal, customs or regulatory advice. Rules and rates change; confirm current requirements with the agency, carrier or contract that governs your shipment.