Free Trade Zone

Definition

A designated area within a country where goods may be imported, stored, handled, manufactured, and re-exported without customs duties or other trade barriers until the goods leave the zone for domestic consumption. FTZs are strategically important in time-critical logistics — an OBC courier can deliver to an FTZ without clearing customs, then the recipient handles clearance at their convenience. Major FTZs near airports (e.g., Shanghai Pudong FTZ, Dubai JAFZA) are common OBC destinations.