Free Trade Zone

A Free Trade Zone (FTZ) refers to a specific area designated outside a country's customs territory, where goods entering and leaving the zone are generally exempt from tariffs and permitted for storage, processing, manufacturing, re-export, and other operations. Its core characteristic is "within the territory but outside customs," meaning that from the perspective of customs supervision, the zone is regarded as being outside the country. Application scenarios include: transit trade, bonded warehousing, export processing, international procurement and distribution, etc. Points to note: Enterprises must comply with the regulatory provisions of the host country regarding FTZs, such as cargo storage duration, account book management, and prohibition of domestic sales; at the same time, a distinction must be made between FTZ and FTA (Free Trade Agreement)—the former is a physically defined area established unilaterally, while the latter is a trade agreement signed among multiple countries. In addition, FTZ also differs from concepts such as bonded zones and export processing zones; FTZs generally have more comprehensive functions and a higher degree of freedom.