How U.S. Companies Are Mitigating Trump Tariffs With Foreign Trade Zones

A foreign trade zone is a physical site located near a U.S. port of entry where goods can be stored, assembled, modified, or repackaged duty free. Fees are collected only after a product leaves the zone and enters U.S. commerce. Companies that have operated inside Foreign Trade Zones include Ford, GM and Chrysler as well as General Electric, Intel and Sony. Since tariffs were announced interest in foreign trade zones has surged. But a rule change by the Trump administration has drastically changed the way FTZs operate. CNBC traveled to Virginia and New York to find out companies use foreign trade zones to mitigate custom duties and tariffs and how the change to FTZ operations will impact businesses.

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Produced and Shot by: Shawn Baldwin

Reporter: Lori Ann LaRocco

Edited by: Evan Lee Miller

Animation: Andrea Schmitz, Jason Reginato

Senior Director of Video: Jeniece Pettitt

Additional Camera: Carlos Waters

Additional Footage: Getty Images

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How U.S. Companies Are Mitigating Trump Tariffs With Foreign Trade Zone