Milestones

It all began with Congress passing the U.S. Foreign-Trade Zones Act in 1934. The first zone opened in New York City in 1936. Since then, the U.S. FTZ Program has grown considerably and continues to deliver measurable benefits even during times of transition. Learn more about the journey.

FTZ 1 in New York City becomes the first U.S. foreign-trade zone.

Congress amends the FTZ Act to permit manufacturing in zones.

The FTZ Board issues new regulations, which allow FTZ sites to be designated at a company’s facility.

The first “subzone” is established on a temporary basis in San Francisco (FTZ 3) for the exhibition of foreign merchandise.

The first Pharmaceutical Manufacturing Plant (FTZ 7) in Mayaguez, Puerto Rico was established.

The National Association of Foreign-Trade Zones (NAFTZ) is established.

General Motors becomes the first auto assembly plant to receive FTZ status.

U.S. Customs & Border Protection (CBP) issues a formal ruling that FTZ users would pay duty on the value of the foreign non-duty-paid content only. 

Zone merchandise is exempted from state and local ad valorem inventory taxes.

CBP introduces audit-inspection systems for FTZs.

FTZs are exempted from annual and activation fees.

The FTZ Act is amended to allow petroleum production in zones.

The FTZ Act is amended to allow duty deferral for production equipment installed in a zone.

The Trade and Development Act extend the use of Weekly Entry procedures for all manufacturing and distribution in Foreign-Trade Zones.

The FTZ Board allows zones to reorganize under the Alternative Site Framework, opening the doors to more participation of small and medium-sized companies in the FTZ program.

FTZ Board publishes revised 15 CFR Part 400 regulations significantly streamlining the regulation of the program.

In February 2014 President Obama signs the executive order on Streamlining the Export/Import Process for America’s Businesses. By 2016, the Automated Commercial Environment will become the Single Window for trade processing.

In December 2015 NAFTZ moves into the National Press Building, located near key agencies

In February 2016 President Obama signs the Trade Facilitation and Trade Enforcement Act of 2015 into law.

With the help of NAFTZ, USITC conducted extensive research and released a report in April 2023 titled Foreign Trade Zones: Effects of FTZ Policies and Practices on U.S. firms operation in U.S. FTZs and Under similar programs in Canada and Mexico (USITC Publication 5423, April 2023).