What is a Foreign Trade Zone in Connecticut?

What is a Foreign Trade Zone in Connecticut? Main Photo

13 Sep 2022


Executives will ask us, “What is a Foreign Trade Zone in Connecticut, and how can my business benefit from an FTZ?”  A Foreign Trade Zone is a federally designated, secure area under U.S. Customs and Border Protection (CBP) supervision. They operate similarly to internally “free-trade zones.” There are financial benefits to importing products directly into a Foreign Trade Zone, which is why major retailers and manufacturing companies use them.

According to CBP, “While in the zone, merchandise is not subject to U.S. duty or excise tax. Companies can export goods from the zone free of duty and excise tax as a benefit. And, merchandise may remain in a zone indefinitely, whether or not subject to duty.”

What is a Foreign Trade Zone in Connecticut? 

The rules for Foreign Trade Zones were set at the federal level, so they are the same in Connecticut as in other states. Connecticut’s Foreign Trade Zones are advantageous because of their number (we have four) and their strategic east coast location. Connecticut’s adjacency to New York and Massachusetts means our Foreign Trade Zones offer proximity to the largest population centers in the United States. 

For more information on “What is a Foreign Trade Zone in Connecticut?” visit the FTZ section of our website, where we provide information on Connecticut’s four Foreign Trade Zones and the financial and logistical benefits of locating a business here.