FTZ vs Non-FTZ: What You Need to Know

In international logistics, you may often hear the terms FTZ (Free Trade Zone) and Non-FTZ. Understanding their differences helps you plan your supply chain better — especially when it comes to import/export costs, storage, and customs clearance.

What is FTZ?

A Free Trade Zone is a designated area where goods can be stored, processed, or re-exported without immediate customs duties. Companies use FTZs to delay or reduce taxes, and to manage cargo more flexibly.

Key benefits:

• No import duty while goods remain in the zone

• Ideal for re-export or value-added processing

• Easier stock handling and cost efficiency

  
  

What is Non-FTZ?

A Non-FTZ area is a normal customs zone. Once goods enter, import duties and taxes are charged immediately. It’s straightforward and common for domestic distribution.

Key points:

• Duties and taxes are payable upon import

• Suitable for local sale or internal use

• Standard customs procedures apply

Which One Should You Choose?

If your business mainly exports or transshipment, FTZ gives flexibility and cost savings.

If your operations focus on local markets, Non-FTZ may be simpler and faster.

At Asico Logistics, we provide both FTZ and Non-FTZ warehouse solutions to match your trade needs. Whether you require bonded storage, customs clearance, or efficient distribution, our team ensures your logistics run smoothly — every step of the way.

Published by Tai Wei Horng