Can someone define to me what a free-trade zone is? It's geography.

Question

woolyfrog · Answer

@tigerlover

justasoftie · Answer

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

woolyfrog · Answer

Oh do you understand what that means?

woolyfrog · Answer

I kind of do

justasoftie · Answer

Here, this may be a bit more simple

justasoftie · Answer

Free-trade zone, also called foreign-trade zone, formerly free port, an area within which goods may be landed, handled, manufactured or reconfigured, and reexported without the intervention of the customs authorities. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to the prevailing customs duties. Free-trade zones are organized around major seaports, international airports, and national frontiers—areas with many geographic advantages for trade. Examples include Hong Kong, Singapore, Colón (Panama), Copenhagen, Stockholm, Gdańsk (Poland), Los Angeles, and New York City. Alternative devices such as the bonded warehouse and associated systems are used in some large seaports (e.g., London and Amsterdam). Read more at: https://www.britannica.com/topic/free-trade-zone

woolyfrog · Answer

"without the intervention of the customs authorities" what does that mean?

justasoftie · Answer

It means that te authorities cannot interevene and stop them from trading

woolyfrog · Answer

why would they want to stop them if they were not in a free trade zone?

justasoftie · Answer

I'm not too sure

woolyfrog · Answer

help

woolyfrog · Answer

@JustSaiyan

JustSaiyan · Answer

Hmmm. What exactly are you asking?

woolyfrog · Answer

So the free trade zone is so a country can trade without the authorities stopping them. I want to know why the authorities would want to stop them in the first place?

JustSaiyan · Answer

It could be a variety of reasons, varying from human trafficking, contraband items, etc etc. Legal and defense reasons, they'd generally like to monitor what is coming into and out of places, that way if a bomb appears in the US hidden in a barrel of bananas, they know which country it came from.

woolyfrog · Answer

lol banana barrel bomb

JustSaiyan · Answer

You never know. XD