What specific advantages would a Free Trade Zone offer a manufacturing company? Also, under which ...

A free trade zone offers a manufacturing firm the ability to import components or subassemblies into a designated area without paying any import related tariffs on the condition that any subassemblies or end items assembled in the designated free trade zone will be exported to customers in other countries.

A company would seek to utilize a free trade zone when import tariffs for subassemblies or components were considerable and somewhat significant amount of product was going to ultimately be re-exported. This allows a company to avoid the opportunity cost associated with paying the import tariffs.