A Foreign-Trade Zone is a specially designated area, in or adjacent to a U.S. Port of Entry, which is considered to be outside the Customs Territory of the U.S. The following is a partial list of the many benefits you can attain when using a Foreign-Trade Zone or Subzone: 

• No duty is ever paid on re-exported merchandise from a zone.
• If the merchandise is sold domestically, no duty is paid until it leaves the zone or zones.
• No duty is paid on waste or scrap within a zone.
• Generally, if foreign components are manufactured into a product which has a lower duty rate, then the lower duty applies. No duty applies to domestic content.
• Both foreign and domestic merchandise in a zone may be stored, repacked, manipulated, manufactured, processed, destroyed, or otherwise altered or changed.
• Generally, when foreign merchandise is sold to the U.S. Government no duty is charged.