Free trade is a trade policy that does not restrict imports or exports. The focus is on removing restrictions, tariffs, and regulations placed on the import and export of goods. This is done with the goal of enhancing the efficiency of global markets and improving the overall economic growth of involved nations. 

A free-trade zone is a dedicated area where goods can land, be repackaged, modified, manipulated, and relabeled, along with the performance of a number of other operations, in some cases excluding manufacturing (similar to a bonded warehousing situation), and re-exported without customs authorities stepping in. Free-trade zones are located outside the United States.

Many countries designate a free-trade zone area that permits these sorts of trade activities and helps American exporters. To find out if a country has a free-trade zone area, contact the embassy or customs officials of that country for information and documentation requirements. Contact information for foreign embassies is available by calling 800-USA-TRAD(E).

Advantages to Getting Free-Trade Certified

• Lower prices – International competition means that consumers can access goods at lower costs. This can actually help to ease the pressure of inflation within a country by giving consumers more money left over to spend on other products.
• Increased efficiency – When consumers have easy access to high-quality, lower-cost imported goods, local businesses can focus their attention on producing goods they are more specialized in. In theory, this leads to higher output and increased efficiency.
• Economic growth – With countries growing more focused on their own specializations, this should grow demand for local goods and services. This leads to more exports, more local jobs, and increased economic growth. 

How to Get Started

1. Apply online for certification. This is the first step towards getting the needed certification. It will suffice to say that your business must fit within those eligible for this certification.
2. The next thing is to designate what type of authority you wish to have (e.g., general-purpose, subzones, and production).
3. The next step is to pay the necessary fee to be granted the certificate. Fees may vary according to the size of the business and other factors.
4. Activate your license through the U.S. Customs and Border Protection (CBP). Once your zone or subzone is approved by the FTZ Board, activation must occur before merchandise can be admitted under zone procedures

As a manufacturer of finished goods, you may want to consider entering more markets and reaching more customers with labels. Some consumers care about labels and they hardly buy products that don’t carry the ones they trust. This explains why most certifying bodies are strict – and some wouldn’t even issue it on some technical grounds.