What is a free trade zone | BDC.ca
logo BDC

Free trade zone

Share

A free trade zone is any location where goods can be shipped, handled, manufactured, reconfigured and re-exported without the involvement of customs agencies. A major seaport, an international airport or a border facility between two or more countries may be designated a free trade zone.

Customs duties are applied when goods are shipped outside the free trade zone.

More about free trade zones

Where a free trade zone does not exist, a company selling products into a foreign market may use a bonded warehouse to store goods without paying duties.

Share

v17.9.0.10395