The ABCs of Production in FTZs

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A foreign-trade zone (FTZ) is a defined physical area within the United States that, for customs entry purposes, is treated as if it is outside U.S. borders. Companies may use FTZs for both storage/distribution activities or, after specific authorization by the U.S. FTZ Board, for production.

In FTZs, “production” is considered to be anything that results in a substantial transformation of an article or that changes its HTSUS classification (6-digit) or eligibility for entry.

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