Question

_________________________ usually provide tax- and duty-free treatment of production facilities whose output is meant to be exported

Answer 1

Foreign trade zones usually provide tax- and duty-free treatment of production facilities whose output is meant to be exported

Explanation:

• The foreign trade zones are also called duty free zones and they are places are used for logistic activities for distribution and storage of goods which provide areas where they tax- and duty-free treatment of production facilities whose output is meant to be exported
• The goods are stored in these areas and then sent through various distribution channels for being exported without having to pay any extra duties for the goods. These places are used as points for shipment of goods and they are effective in cost reduction  
• The companies and the government have an advantage with these transshipment warehouses since these place provide facilities which are tax-free and and no duty is to be paid for the goods that have to be re-exported.  

To know more about duty free zones

Difference between free trade zone and special economic zone

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