Inside the U.S. Loophole Helping Importers Save Millions

Foreign-trade zones (FTZs) are designated areas near U.S. ports where imported goods can be stored without immediately incurring customs duties. Originally created in 1934 under the New Deal to help economic recovery, FTZs are now experiencing a resurgence as businesses face rising tariffs, especially on materials like steel and aluminum.

These zones allow companies to defer taxes until the goods exit the warehouse and enter the domestic market, a mechanism that can improve cash flow and reduce financial strain during turbulent trade periods.

Small businesses and large distributors alike are turning to FTZs to buy time and navigate high import costs, with some warehouse operators reporting tenfold increases in inquiries.

The process requires digital coordination with U.S. Customs and Border Protection and upfront licensing, but the potential savings are significant. As trade tensions continue, FTZs are emerging as a strategic tool for importers hoping to manage risk and remain competitive.