key term - Free-trade zone

Definition

A free-trade zone (FTZ) is a specific area within a country where goods may be imported, handled, manufactured, or reconfigured without direct intervention by the customs authorities. Goods in a free-trade zone are exempt from import duties and taxes until they leave the zone and enter the domestic market.

Related terms

Tariff:

A tax imposed on imported or exported goods when they cross national borders.

International Economic Communities: Groups of nations that collaborate to create larger markets with fewer trade barriers between member countries.

Customs Authority: Government agency responsible for controlling the flow of goods into and out of a country, including collecting tariffs and preventing illegal trade