Free Trade Zone Law and Legal Definition
Free trade zone is a port designated by the government of a country for duty-free entry of any non-prohibited goods. In a free trade zone, merchandise may be stored, displayed, used for manufacturing, etc., within the zone and re-exported without duties. In a free trade zone, some of the normal trade barriers such as tariffs and quotas are eliminated with a view to attract new business and foreign investments. Free trade zones are characterized by favorable customs regulations or no customs duties and controls for transshipment.