Foreign Trade Zones (FTZs) have become a cornerstone of internationallogistics strategy—but they didn’t start that way.
The concept of FTZs emerged in the early 20th century. In the UnitedStates, the Foreign Trade Zones Act was signed into law in 1934 as a responseto the Great Depression. It allowed businesses to import goods into designatedzones without paying duties until the goods were either sold domestically orre-exported—helping revive trade and manufacturing.
As global trade increased, other countries began implementing similartrade zone models. FTZs grew from being mere storage hubs to becoming complexlogistical centers, supporting assembly, manufacturing, and even value-addedservices.
Today, FTZs are not just customs tools—they're strategic businessassets. They allow companies to defer, reduce, or even eliminate customsduties, streamline operations, and stay competitive in high-tariff markets.
Understanding the history and evolution of FTZs helps businesses seetheir full potential—not just as a compliance mechanism, but as a strategictool for international success.
