Foreign-trade Zones Explained & Applied

"With tariffs in the news again and the trade policy environment shifting, folks are back to wanting to relearn about the [foreign-trade zone] program."

Foreign-trade zones (FTZs) allow companies to bring goods into secure U.S. locations without immediately entering U.S. commerce for customs purposes. They allow businesses to defer duties, taxes, and fees until goods officially enter the market, or avoid them altogether if those goods are ultimately exported.

FTZs are often used by manufacturers to store inventory or assemble kits, but given the current level of trade uncertainty, they have also become a way to address the unpredictability of tariffs.

Melissa Irmen is the Director of Advocacy and Strategic Relations for the National Association of Foreign-trade Zones (NAFTZ), and she joins this episode to share practical advice about what FTZs are, how they work, and why they are drawing renewed attention in today's tariff-heavy trade environment.

In this episode of the Art of Supply podcast, Melissa and Kelly Barner discuss:

• Which companies tend to benefit most from FTZ participation, including manufacturers, distributors, retailers, electronics companies, pharmaceutical firms, and industrial businesses
• How FTZs offer flexibility during periods of trade disruption, helping importers pause, store, stage, or re-strategize inventory while tariffs and policy conditions shift
• How the FTZ program has evolved, including a streamlined application process, ongoing regulatory modernization efforts, and current advocacy priorities related to Congress, Customs and Border Protection, and USMCA

This episode makes a compelling case for taking a first (or another) look at foreign-trade zones.

Links:

• Melissa Irmen on LinkedIn
• National Association of Foreign-trade Zones
• Kelly Barner on LinkedIn
• Art of Supply LinkedIn newsletter
• Art of Supply on AOP