U.S. Foreign-Trade Zones: Puerto Rico

What is a Foreign-Trade Zone?

A Foreign-Trade Zone (FTZ) is a defined physical area within the United States that, for customs purposes, is treated as if it is outside U.S. borders. FTZs are often at ports, airports, or industrial parks. Companies may use FTZs for both storage/distribution activities or, after specific approval by the U.S. FTZ Board, for manufacturing.

What Activity is Permitted in Zones?
 

• Merchandise in a zone may be assembled, exhibited, cleaned, manipulated, manufactured, mixed, processed, relabled, repackaged, repaired, salvaged, sampled, stored, tested, displayed and destroyed.
• Manufacturing, processing and any activity that results in a change of the tariff classification must be specifically approved by the FTZ Board.
• Retail trade is prohibited in zones.