A free zone is a part of the customs territory of the European Union (EU) or a territory within the EU jurisdiction. The free zones are intended for the transshipment and the unlimited storage of all types of goods.
The aim is to reduce barriers to international trade that exists through customs formalities. Within free zones, non-Community goods are considered not yet in the customs territory of the EU. Therefore, they will not be subject to import duties until they enter the economic cycle of the EU single market. Free zones are also known as free ports, free warehouses or free trade areas.