Which of the following best describes an FTZ?

The definition of a Foreign Trade Zone (FTZ) is captured well by the idea of a special area for manufacturing with deferred duties. An FTZ is designed to facilitate international trade and make it more efficient by allowing businesses to store, assemble, manufacture, and even process goods without the immediate payment of customs duties. The key feature of an FTZ is that it allows for the deferral of duties until the goods are actually imported into the U.S. market for consumption. This can be particularly beneficial for manufacturers, as it helps improve cash flow and provides flexibility in how they manage their inventory and production processes.

When products are moved within the FTZ, they can be transformed or assembled without incurring customs duties until they leave the FTZ and enter the U.S. market. This system encourages businesses to operate in these zones by reducing upfront costs and providing them with a competitive edge.

The other options do not accurately characterize the primary features of an FTZ. For example, while an FTZ allows for certain advantages concerning tariffs, it does not eliminate all duties entirely; duties may still apply under specific circumstances when goods exit the zone. Moreover, an FTZ is not exclusively focused on exporting services or merely a location for storing goods without tariffs, which