Free Trade Zones

"Free Trade Zones" (sometimes called "customs free zones" or "duty free
zones") is a generic term referring to special commercial and industrial
areas at which special customs procedures allow the importation of foreign
merchandise (including raw materials, components, and finished goods)
without the requirement that duties be paid immediately. If the
merchandise is later exported, duty free treatment is given to reexports.
The zones are usually located in or near ports of entry. Merchandise
brought into these zones may be stored, exhibited, assembled, processed or
used in manufacture prior to reexport or entry into the national customs
territory. When manufacturing activity occurs in free trade zones, it
usually involves a combination of foreign and domestic merchandise, and
usually requires special governmental authority. Types of free trade zones
include: foreign trade zones (and foreign trade subzones); free ports; and
transit zones.