What is a duty-free zone?

Locations which facilitate travel, such as international airports and seaports, are commonly categorized as duty-free zones due to travelers commonly leaving the country shortly after making a purchase. While the duty free shop may be tax exempt, travelers may be expected to pay an import tax upon bringing the goods into a new country.

What is a free-trade zone (FTZ)?

Process started in May 2023. A free-trade zone ( FTZ) is a class of special economic zone. It is a geographic area where goods may be imported, stored, handled, manufactured, or reconfigured and re- exported under specific customs regulation and generally not subject to customs duty.

What is a duty-free shop?

A duty-free shop is a retail store whose goods are not taxed by local or national entities, so long as the goods sold by these stores will be taking the goods out of the country. What Does Duty-Free Zone Mean in Finance? Stores categorized as "duty-free" are typically in a duty-free jurisdiction, known as a "duty-free zone."