Where Are Foreign Trade Zones?

Q: What’s the approval process like?

Plan on 6 to 18 months to get FTZ approval . You’ll apply through CBP’s online system and pick a zone type—general purpose, subzone, or production. Costs vary, but the average annual tab runs about $50,000 as of 2026.

Q: How many jobs do FTZs support?

Over 500,000 U.S. jobs rely on FTZs , many in high-skill sectors like aerospace and biotech. These aren’t just warehouse gigs—they’re often good-paying, technical roles.

Q: What’s the difference between a general-purpose zone and a subzone?

General-purpose zones serve multiple businesses under shared infrastructure. Subzones, on the other hand, are single-company operations—often big manufacturers like car plants or refineries.

As of 2026, the United States has 230 Foreign-Trade Zones (FTZs) with nearly 400 subzones, where goods move in and out without paying duties right away. These zones operate under U.S. Customs and Border Protection and sit at major entry points like seaports, airports, and land borders, stretching from Los Angeles to Miami.

Where exactly are these FTZs located?

Foreign-Trade Zones cluster near major ports of entry—think seaports, airports, and land borders where global trade flows in. In the U.S., they’re packed along the Atlantic, Pacific, and Gulf Coasts, plus inland hubs like Chicago and Kansas City. Over 70% of U.S. FTZ activity happens within 100 miles of a coast, according to the U.S. Census Bureau.

What’s the breakdown of FTZs and subzones?

Feature	Data	Source
Total FTZs	230+ main zones	CBP, 2026
Subzones	~400	CBP, 2026
Primary Locations	Seaports, airports, border crossings	CBP, 2025
Oversight Agency	U.S. Customs and Border Protection	CBP, 2026
Legal Basis	Foreign-Trade Zones Act of 1934	U.S. Code Title 19
Duty Deferral Benefit	Up to 75% reduction on select goods	ITA, 2024
Top FTZ Activity	Machinery, electronics, pharmaceuticals	U.S. International Trade Commission, 2025

How did FTZs get started?

The idea goes back to 19th-century Europe, where free ports popped up to handle trade without tariffs. The U.S. made it official in 1934 during the Great Depression to jumpstart domestic industry and jobs. Today, FTZs support over 500,000 U.S. jobs—many in aerospace and biotech—per a 2025 report from the International Trade Administration.

Which cities host the biggest FTZs?

San Francisco and New York City rank among the most critical FTZ hubs. These zones have turned into global logistics powerhouses, moving billions in trade every year. Other major players include Los Angeles, Miami, and Chicago.

What types of businesses use FTZs?

Manufacturers, distributors, and logistics firms dominate FTZ usage. Machinery, electronics, and pharmaceutical companies benefit the most from duty deferrals and streamlined customs. Honestly, this is where high-volume importers see the biggest savings.

How do companies actually use an FTZ?

Businesses bring goods into an FTZ without paying duties upfront. They can store, process, or assemble products there before shipping them out—either to U.S. markets or re-export. The key? No immediate duty hit, which can free up cash flow for operations.

What’s the approval process like?

Plan on 6 to 18 months to get FTZ approval. You’ll apply through CBP’s online system and pick a zone type—general purpose, subzone, or production. Costs vary, but the average annual tab runs about $50,000 as of 2026.

Do FTZs really save companies money?

Yes—duty elimination and weekly entry savings can wipe out costs for high-volume importers. Some see up to 75% duty reductions on certain goods, per the ITA.

What’s the catch?

The biggest hurdle? Upfront paperwork and approval time. You’ll need to prove your operation will benefit U.S. commerce. Also, not every zone handles the same goods—some specialize in electronics, others in pharmaceuticals. Do your homework first.

How many jobs do FTZs support?

Over 500,000 U.S. jobs rely on FTZs, many in high-skill sectors like aerospace and biotech. These aren’t just warehouse gigs—they’re often good-paying, technical roles.

Can foreign companies use FTZs?

Absolutely. Foreign manufacturers can set up shop in U.S. FTZs to assemble or finish products before shipping them out. It’s a smart way to avoid duties on imported components while serving the U.S. market.

What’s the difference between a general-purpose zone and a subzone?

General-purpose zones serve multiple businesses under shared infrastructure. Subzones, on the other hand, are single-company operations—often big manufacturers like car plants or refineries.

How do FTZs handle re-exports?

Goods moved into an FTZ for re-export never face U.S. duties. That’s a huge advantage for companies shipping products back out, whether to another country or a U.S. free trade partner.

What’s the role of CBP in FTZs?

CBP oversees FTZ operations to ensure compliance with trade laws. They approve zones, monitor activity, and enforce duty collection when goods enter U.S. commerce.

Where can I find the latest FTZ regulations?

Start with the CBP FTZ Program website. It’s got the most current rules, zone status updates, and contact details for local port authorities. Bookmark it—you’ll need it.

Any final tips for companies considering an FTZ?

Talk to other businesses already using FTZs. Crunch the numbers—duty savings vs. operating costs—to see if it pencils out. And don’t underestimate the paperwork; get your compliance team involved early. (Seriously, this stuff matters.)