A designated area, where merchandise may be brought into a country for further processing. Duty is paid only on the items brought in, normally at a lower rate than for finished goods, and paid only at the time of sale

A geographical space in which goods moving in and out of that space are exempted from country specific importation/exportation customs duties. Duty Free zones are typically created by governments, to encourage investment in that particular region of the country, and to create local jobs