A foreign trade zone is a secure and enclosed area, located near or in a Port of Entry. An FTZ is considered to be outside U.S. customs territory, meaning that foreign and domestic materials or merchandise may be moved into it without being subject to U.S. customs duties until the goods enter U.S. commerce. When merchandise is removed from an FTZ, customs duties may be eliminated if the goods are then exported outside the United States. If the merchandise is formally entered into U.S. commerce, then customs duties are due at the time goods move outside the foreign trade zone.