Free-Trade Zone
A free-trade zone (FTZ) is a class of special economic zone. It is a geographic
area where goods may be imported, stored, handled, manufactured, or
reconfigured and re-exported under specific customs regulations and generally
not subject to customs duty. Free trade zones are generally organized around
major seaports, international airports, and national frontiers—areas with many
geographic advantages for trade.[Britanica]
The World Bank defines free trade zones as "small, fenced-in, duty-free areas,
offering warehousing, storage, and distribution facilities for trade,
transshipment, and re-export operations." Free-trade zones can also be defined
as labor-intensive manufacturing centers that involve importing raw materials or
components and exporting factory products, but this is a dated definition as
more and more free-trade zones focus on service industries such as software,
back-office operations, research, and financial services.[Masaev S. p 98]
Austin, A. (2016). Free-trade zone. Encyclopædia Britannica. Retrieved from https://www.britannica.com/topic/free-trade-zone
Masaev S. (2009). Special Economic Zone: Performance, Lessons Learned, and Implication for Zone Development. Washington DC: World Bank.