What is Foreign-Trade Zone (FTZ)?

An FTZ is a secure, CBP-supervised area within the U.S. that is treated, for tariff purposes, as if outside U.S. customs territory. Goods can enter an FTZ without paying duty, and duty is only owed when (or if) they leave the zone for U.S. consumption — supporting deferral, inverted tariff savings, and re-export benefits.