What is a primary characteristic of goods processed in a Foreign Trade Zone (FTZ)?

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In a Foreign Trade Zone (FTZ), one of its hallmark features is that customs duties on goods are deferred until those goods leave the FTZ and enter the U.S. commerce. This means that while the goods are stored, assembled, or otherwise processed within the FTZ, no import tariffs or duties are applied, creating a financial advantage for companies utilizing FTZs.

This deferment facilitates cash flow management, allowing businesses to delay costs associated with tariffs until the goods are actually sold in the domestic market. If the goods are exported directly from the FTZ without entering the U.S. market, then no duties are paid at all. This aspect encourages international trade and can help enhance a company's competitiveness.

The other options do not accurately reflect the nature of goods in an FTZ. For instance, goods processed in an FTZ can indeed be re-exported without incurring customs duties, and there are specific activities allowed, including manufacturing, within these zones, contradicting the idea that such activities are prohibited.

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