Question

In a free trade zone (FTZ) or free port:

A) the duties on labor and overhead costs are higher than in the rest of the country.
B) price escalation cannot be controlled easily.
C) import duties are postponed till the product leaves the FTZ and enters the country.
D) tariffs are usually higher for raw materials than for finished goods.
E) goods can only be stored but not processed.

Answer 1

In a free trade zone or free port, import duties are postponed until the product leaves the zone and enters the country.

Step-by-step explanation:

In a free trade zone (FTZ) or free port, import duties are postponed till the product leaves the FTZ and enters the country. This means that the import duties are not paid immediately when the goods enter the FTZ, but are only paid when the goods are taken out of the FTZ and brought into the country. This allows companies operating in the FTZ to store and process goods without having to pay import duties until the goods are brought into the country.