A Foreign Trade Zone (FTZ) is an isolated, policed, and enclosed area that is in or adjacent to a port of entry and is considered outside customs territory of the United States. A FTZ is a restricted access site authorized by the Foreign Trade Zone’s Board which consists of the Secretary of Commerce and the Secretary of the Treasury. Through regulations of the Customs and Border Protection (CBP), FTZs are secured areas under CBP supervision and are located in or near a CBP port of entry. CBP entry procedures do not apply, although FTZs are within the territory and jurisdiction of the United States.

Merchandise admitted into a foreign trade zone may be assembled, manufactured, manipulated, sorted, repaired, cleaned, inspected, distributed, repacked, and destroyed.

The McAllen Foreign Trade Zone #12 was created in 1973, making it the first inland non-seaport Foreign Trade Zone in the United States. This began a chain of free enterprise that is unparalleled anywhere else in the world. Over 410 companies ranging from manufacturing, industrial, supplier, warehouse distribution, logistics, etc. have located in the most vibrant area on the border – McAllen, Texas. Today, the McAllen Foreign Trade Zone consists of over 775 acres, and offers full service logistics solutions to over 100 clients representing over 42 countries world wide.