Freight Glossary
FTZ (Free Trade Zone) – Meaning & Examples
A designated area where goods can be imported, stored, and processed without standard customs duties.
- Abbreviation
- FTZ
- Full term
- Free Trade Zone
- Related terms
- FTZ, foreign trade zone, free zone, special economic zone
A Free Trade Zone (FTZ, also called Foreign Trade Zone or Free Zone) is a designated geographic area where goods can be landed, handled, manufactured, or reconfigured, and re-exported under specific customs regulations, often without being subject to customs duties. FTZs encourage trade and manufacturing by offering duty deferral/elimination, streamlined customs procedures, and reduced paperwork. Examples include Jebel Ali (Dubai), Singapore, and US FTZs.
Free Trade Zone examples
- A company assembles products in a US FTZ, paying duty only on the finished goods when they enter US commerce.
How FTZ is used in freight operations
FTZ appears in quotations, bookings, shipping documents, and tracking updates. Confirm how it applies to your shipment with your carrier, forwarder, or customs representative, because practice can differ by country and contract.
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Frequently asked questions
What is FTZ?
A designated area where goods can be imported, stored, and processed without standard customs duties.
What does FTZ stand for?
FTZ stands for Free Trade Zone.
What is an example of FTZ?
A company assembles products in a US FTZ, paying duty only on the finished goods when they enter US commerce.