Trade zones are designated areas where goods can be imported, manufactured, and exported with reduced customs duties and taxes. These zones aim to encourage economic activity by simplifying regulations and providing incentives for businesses. Companies operating within trade zones can often enjoy benefits like faster processing times and lower operational costs. There are different types of trade zones, including Free Trade Zones and Foreign-Trade Zones. Free Trade Zones allow for the duty-free importation of goods, while Foreign-Trade Zones enable businesses to defer duties until goods enter the domestic market. Both types help stimulate local economies and promote international trade.