- Only foreign or domestic merchandise that is not prohibited by law or other exception listed below, whether dutiable or not, may be taken into a foreign-trade zone.
- Merchandise which lawfully cannot be imported into the United States is prohibited without exception. Furthermore, a quota on importation cannot be circumvented by placing merchandise subject to such quota into a zone.
- Merchandise, for which a quota is filled or for which a quota on entry is established, may be placed into a zone until the quota opens or is removed, since foreign-trade zones are considered outside the Customs territory for entry purposes. Such products, with the exception of certain textiles (19 CFR 146.63(d)), may be manipulated or manufactured while in the zone into a product not subject to quota.
- Some Federal agencies regulate storage and handling in the United States of certain types of merchandise, such as explosives. Depending on the nature of the requirements and the particular characteristics of the zone facility, such merchandise may be excluded. Moreover, agencies which license importers or issue importation permits may block admissions to a zone which are not properly licensed or permitted.
- The Foreign-Trade Zones Board may exclude from a zone any merchandise that is in its judgment detrimental to the public interest, health, or safety. The Board may place restrictions on certain types of merchandise which would limit the zone status allowed, the kind of operation on the merchandise in a zone, the entry of the merchandise into the commerce, or similar transactions or activities.
- Foreign and domestic merchandise permitted in a zone may be stored, sold, exhibited, broken up, repackaged, assembled, distributed, sorted, graded, cleaned, mixed with foreign or domestic merchandise, otherwise manipulated, destroyed, or manufactured, without being subject to U.S. Customs laws for entry and other purposes. All manufacturing is reviewed by the Board in terms of trade policy and net economic effect.
- Many products subject to an internal revenue tax may not be manufactured in a zone. These products include alcoholic beverages, products containing alcoholic beverages, except domestic denatures distilled spirits, perfumes containing alcohol, tobacco products, firearms, and sugar. In addition, the manufacture of clock and watch movements is not permitted in a zone.
- No retail trade of foreign merchandise may be conducted in a FTZ. However, foreign and domestic merchandise may be stored, examined, sampled, and exhibited in a zone.
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