FOREIGN TRADE ZONES
Washington State currently has eleven designated foreign trade zones. These are legally secured areas outside the nation’s custom territory that operate as duty-free areas. Firms pay no tariffs on any imported raw materials used to create their products when the products are shipped overseas. If these products are sold in the U.S., companies pay duty only when the products are shipped and only on that portion of foreign materials that actually went into the product, not the waste. Foreign and domestic goods may be processed or stored without payment of customs duties and without being subject to other regulations normally applied to customs entries. Materials maybe sorted, reassembled, repackaged, manipulated, processed, used in manufacturing, or stored in the Foreign Trade Zone.