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August 1991, No. 48

Foreign trade zones (FTZ) are areas located within U.S. boundaries, but outside of its customs territory.

Last Updated: 08/30/1991

Foreign Trade Zones: Growth Amid Controversy

David Weiss

The original intent of FTZs was to encourage exports and related activities. Until recently, FTZ growth was minimal because most of the export-enhancing features merely duplicated other tariff-reducing vehicles on re-exported goods.