Free trade zone is an area in a country where goods can be imported without paying customs duties (import taxes). Foreign traders may store, exhibit, assemble, or process products in these zones before shipping them elsewhere for sale or use. Free trade zones are located near such transportation centers as seaports and airports. A free trade zone must operate in a city that is a port of entry. Such a city has customs centers through which goods enter a country. A free trade zone differs from a free port, which is an entire city or territory where no customs duties are collected.

