Free zone
(FZ).
1. International trade - customs duty.
Alternative name for a freeport, a zone around a sea port or airport that enjoys customs duty exemptions.
2. Trade - international trade - customs duty - tax.
A zone in a country that enjoys exemptions from customs duties, together with other support, often including other tax advantages.
Free zones are often located around sea ports, airports or international borders.
A key risk of free zones is that they can facilitate fraud and other organised criminal and terrorist financing activity.
The support that can be given under international law by way of free zones is limited by state aid rules, including those of the World Trade Organization.
The terms Free zone and free trade zone are sometimes used interchangeably.
