What is the definition of a foreign-trade zone? (What is an FTZ?)

A foreign-trade zone (FTZ) is an area, typically a factory or warehouse, where special U.S. Customs procedures are permitted to defer, and possibly alter the cost of international trade in the United States. Customs duties and fees are generally deferred until merchandise is sold into the United States, and eliminated if the merchandise is exported, scrapped, or destroyed. The program works to equate the U.S. Customs duties and fees paid by domestic and foreign manufacturers.