Free Trade Zones a name used in many other countries as a noun, Foreign Trade Zones are used primarily by the United States, previously called free ports are zones established within designated areas within country borders, and Trade zones help minimize barriers to international trade, thereby helping importers and exporters operate under better economic conditions. The foreign trade zone is a designated area within a country that is created to help eliminate certain trade barriers such as tariffs and bureaucratic regulations. To help strengthen the global market presence by attracting foreign investors and new businesses, materials brought into the free zone are not subject to customs duties, regulations or quotas. For customs purposes the free zone is always outside the country, but materials brought into a free zone must be legally in the country, just because it may be legal in another country, it must nevertheless comply with the laws of the country where the material enters the free trade zone. When goods are sold to consumers where the free trade zone is located, they are subject to that country's customs duties. A free trade zone can be described as a hub where raw materials, parts or components enter and a finished product or good is exported. The United States did not have its first free trade zone until 1934, the result of the Foreign Trade Zone Act. The Free Trade Zone Act was one of two laws passed in 1934 to try to reduce some of the damage caused by the effects of the free trade zone. the Smoot-Hawley tariffs, which were implemented or put in place in 1930 and in an attempt to help advance the American economy by improving the competitiveness of manufacturers, helping to maintain operations in the United States, and creating and maintaining jobs where free trade zones were. .... middle of paper ...... good. If the raw material was subject to a lower duty rate, they would claim the product as a “privileged foreigner”. If the finished product had a higher duty rate, they would call it “unprivileged foreign”. They could have gotten away with paying local taxes, but most businesses don't, as approval for a subzone must be given by local authorities. Some of the disadvantages were that they had to meet security standards - they had to have a detailed protocol in place for reporting theft to customs etc., they were subject to customs visits at any time and more complex administrative requirements than traditional customs entries. Additional information regarding FTZs can be found at @http://enforcement.trade.gov/ftzpage/letters/ftzlist-map.htmlMilwaukee local information is @http://city.milwaukee.gov/ CityLegacySite/port/FOREIGN-TRADE-ZONE-NO.-41-GRAN/FTZ--General-Information.htm