foreign-trade zone: meaning, definition, pronunciation and examples

They are functionally very similar. 'Foreign-trade zone' is the specific term used in United States law and regulations. 'Freeport' is a common term in the UK, EU, and other parts of the world. Both refer to secured areas where goods are treated as being outside the customs territory for duty purposes.

Not automatically. A business must apply for and receive approval from the relevant national authority (e.g., the Foreign-Trade Zones Board in the U.S.). Use is typically granted to businesses involved in import/export, manufacturing, or logistics that can demonstrate a benefit from the zone's provisions.

No. The key benefit is the *deferral* of duty. Customs duties and taxes are generally payable only when and if the goods are formally entered into the domestic market of the host country. If the goods are re-exported, duties are usually never paid.

A bonded warehouse is a single facility licensed for duty deferral. A foreign-trade zone is a broader, designated geographic area (which can contain multiple warehouses and factories) offering more extensive benefits, including not just storage but also manufacturing, processing, and exhibition without duty liability.

A designated, physically secure area within a country where imported goods can be stored, processed, or assembled without being subject to that country's customs duties until they enter the domestic market.

Foreign-trade zone is usually formal, technical, business, academic (economics/trade) in register.

Foreign-trade zone: in British English it is pronounced /ˈfɒr.ɪn treɪd zəʊn/, and in American English it is pronounced /ˈfɔːr.ən treɪd zoʊn/. Tap the audio buttons above to hear it.