A free trade zone can be identified as a particular class of the special economic region. It is also known as the geographic area where wholesale goods may be manufactured, landed, stored, handled or reconfigured and even re-exported under a regulation of a particular customs but not subjected to customs duty. 

On the main international airports, seaports and national frontiers are where free trade zones usually organized since they are regions with numerous geographical benefits for business. 

The overview of free trade zone around the globe

European Union

European Union (EU) has 27 countries that each has a company which operates or manufacture and distributes facilities and greatly benefits from various types of FTZ organization. 

United States

FTZ in United State is well-known as a secure region located inside or next to an entry port considered outside the United State Customs and boundary protection (CBP) territory. These companies might as well assign their manufacturing or even their distributing hub as the FTZ in U.S.A and Puerto Rico. Currently, there are over 260 such zones designated as FTZs, which provides services for more than 2500 FTZ clients. 

For a company to have the designation from the FTZ, an application to the United-State-Foreign-Trade Zone Board is required and also the following execution implementation policies, system, and procedure. 


Various unique customs regions permit exporter, importers, and the manufacturer to have an advantage of the duty and also some indirect tax in China. Such zones include FTZs, Export-Processing-Zone (EPZ), and Bonded-Port-Area (BPA). As a whole of these three organizations allow certain duties and the index savings, every program was set up to meet particular objectives.

EPZ was assigned to manufacture wholesale goods that intended for exporting; however, testing, repairing and the logistics services have as well authorized in entire EPZ since the year 2009. The Bonded Logistics Parks permit a simple processing but does not allow the complex manufacture to be conducted under a processing trade. 


In recent years, changes in customs of Mexico regulation has considerably developed FTZ such as programs beyond the conventional Maquila maneuvers previously available for the importers. 

A Strategic-Private-Bonded warehouse program has subsisted since 2003 with advantages equally to those of United States, FTZs and EU PCC plan. Under the REFINE, raw materials and goods might enter the approved websites, which could be a private warehouse or the stores operated by the United States regime with a deferral of the import task and additional taxes. 

Immediate between a REFINE, wholesale goods might undergo assembly, manufacturing or even other added valued services without any payment of the tax and duties. 


Currently, Brazil only allows two types of FTZ to operate within the country, and that is Manaus-Free-Trade-Zone and the Export-Processing-Zone. As both are considered as FTZs, they have been established by a regime with a clear objective. The Manaus FTZ provides a beneficial target to encourage the product manufacturers between the regions for consumption in the domestic market of Brazil. 


The Export-Process-Zone is providing benefits for the companies that perform in manufacturing and also assembling processes for the product that meant for exportation.