USA free zones in 2023

• The United States government operates around 293 free trade zones (FTZs) throughout the 50 states, known as “Foreign Trade Zones”. These zones offer multiple benefits to businesses, including:
  • No customs duty on goods imported in the FTZ and then re-exported outside of the US;
  • Deferral of import duties and excise taxes until the imported goods enter the mainland US outside of the FTZ;
  • Inverted tariffs are permitted, meaning that goods processed in the zone benefit from lower import taxes if the finished product has lower applicable taxes than their imported constituent parts;
  • As FTZs are hubs of import activity, there are streamlined customs procedures that expedite operations and logistics for our Clients;
  • Exemption from ad valorem taxes and state taxes while goods are in the zone, lowering the tax costs associated with inventory;
  • 100% import duty exemption on raw materials brought by companies with government or military contracts;
  • No duty paid on i) damaged goods ii) goods that are being repaired iii) exports between two FTZs;
  • No time constraints on the storage of merchandise in the FTZ.
• Only products considered detrimental to the public, including alcohol, tobacco products and firearms, are not allowed in the FTZ;
• Retail of foreign products in not allowed inside a FTZ;
• Texas, Louisiana and South Carolina operate the most popular free zones in the United States, measured in terms of manufacturing/production of exports annually.

Table of comparison