free zone

free zone
An area where merchandise, whether of domestic or foreign origin, may be admitted, deposited, stored, packed, exhibited, sold, processed, or manufactured. This merchandise may be removed to a point outside the territory of the state without being subjected to customs duties, internal consumer taxes, or inspection except for reasons of aviation security or appropriate narcotics control measures. Merchandise of domestic origin admitted into a free zone may be considered exported. When removed from a free zone into the territory of the state, the merchandise is subjected to customs and other required entry procedures.

Aviation dictionary. 2014.

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