Foreign-trade zones of the United States

In the United States, a foreign-trade zone (FTZ) is a designated area located in or near a U.S. port of entry where domestic and foreign merchandise is considered outside U.S. customs territory for tariff purposes. In these zones, goods may be imported, stored, manipulated, manufactured, or re-exported without being subject to customs duties or other ad valorem taxes until they enter U.S. commerce. The purpose of FTZs is to promote U.S. competitiveness in international trade by reducing tariff costs on imported inputs and exported finished products.

These zones are established under federal law with authorization from the relevant state legislature and operate under the supervision of U.S. Customs and Border Protection, part of the United States Department of Homeland Security. Since 1986, customs oversight has been conducted primarily through audit-based compliance reviews and spot checks, rather than continuous on-site monitoring.

As of 2025, there are more than 260 FTZ projects and nearly 400 subzones operating across the United States.