Some companies import components,use them in the production of their end items,and ultimately export them to other countries.If a company wanted to import the components duty-free,use those components in the production of their end items,and then export them to other countries,they would most likely utilize a(n):
A)Duty-free Territory
B)Foreign Trade Zone
C)International Cross Docking Zone
D)International Processing Center

Question

Some companies import components,use them in the production of their end items,and ultimately export them to other countries.If a company wanted to import the components duty-free,use those components in the production of their end items,and then export them to other countries,they would most likely utilize a(n):
A)​Duty-free Territory
B)​Foreign Trade Zone
C)​International Cross Docking Zone
D)​International Processing Center

Quizplus · Accepted Answer

A Foreign Trade Zone (FTZ) is a designated area within the United States that is considered outside of U.S. Customs territory. This means that goods can be brought into the zone without paying duties or taxes until they are actually brought into the domestic market. Companies can use the imported components to manufacture their end items within the FTZ and then export them to other countries without paying duties on the imported components. This can provide significant cost savings and make the company's products more competitive in the global market.

Some Companies Import Components,use Them in the Production of Their