D is the correct answer. Free trade zones (FTZs) are designated areas within a country where goods can be imported, handled, manufactured, and re-exported without the intervention of the customs authorities. FTZs are typically used to facilitate trade by reducing, deferring, or eliminating customs duties and tariffs.
While activities such as cross-docking goods, reconfiguring products, and re-exporting goods are generally allowed and are some of the key benefits of using an FTZ, conducting retail trade directly within the FTZ is usually forbidden. Retail trade involves selling goods directly to consumers, and FTZs are not intended for this purpose. Instead, they are designed for commercial activities that precede the goods reaching the retail market, such as storage, assembly, manufacturing, processing, or repackaging. Once goods leave the FTZ and enter the domestic market, they are subject to the usual customs procedures and duties.
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