Foreign Trade Zones let you defer, reduce, or eliminate import duties while streamlining your supply chain logistics.
Foreign Trade Zones create a unique customs status where imported goods sit on U.S. soil but outside the customs territory. This legal distinction unlocks powerful benefits: you can hold inventory indefinitely without paying duties, re-export goods duty-free, and in some cases pay a lower finished-product rate instead of higher component rates through zone manufacturing.
For e-commerce sellers, FTZs offer duty deferral that improves cash flow (pay duties only when orders ship domestically), elimination of duties on international orders fulfilled from U.S. inventory, reduced duties through inverted tariff treatment on assembled products, and no duties on goods that are damaged, scrapped, or destroyed within the zone.
The simplest path is partnering with a 3PL that operates within an existing FTZ. You do not need to establish your own zone—hundreds of FTZ-activated warehouses accept third-party inventory. Evaluate whether your import volume and duty rates justify the additional per-unit handling fees that FTZ operators typically charge.
A Foreign Trade Zone (FTZ) is a designated area within the United States that is legally considered outside the customs territory for duty purposes. Goods can be imported into an FTZ without paying duties until they enter U.S. commerce, and goods re-exported from an FTZ owe no duties at all.
FTZs reduce tariffs through duty deferral (pay only when goods leave the zone), duty elimination (no duties on re-exports), inverted tariff relief (pay the lower rate when components carry higher duties than finished goods), and duty avoidance on waste and scrap.
Yes. While FTZs were traditionally used by large manufacturers, many third-party logistics providers now offer FTZ services accessible to smaller importers. Some 3PLs operate within FTZs and allow e-commerce sellers to store and fulfill from zone facilities.
There are approximately 195 FTZ projects across all 50 states and Puerto Rico, with over 500 active subzones. Every state has at least one FTZ, making the program accessible regardless of where you operate.
MarginHub models the duty impact of routing your inventory through a Foreign Trade Zone based on your actual product data.
Run FTZ Analysis