Foreign Trade Zone advantages in Frederick

Foreign Trade Zone (FTZ) has been utilized in adjacent Washington County for several years and now that incentive zone is a powerful tool for Frederick companies navigating global supply chains. For businesses in Frederick City and County, participation in Foreign Trade Zone #255 (FTZ #255)—administered through Washington County—opens the door to meaningful cost savings, streamlined operations, and increased competitiveness.

Established in 2002, FTZ #255 allows companies to reduce, defer, or even eliminate duty fees on imported goods. These benefits can significantly improve cash flow and lower operating costs for manufacturers, distributors, and logistics‑driven businesses.

In October 2023, the U.S. Department of Commerce approved Washington County’s application to restructure FTZ #255 under the Alternative Site Framework (ASF). This modernized structure makes it faster and easier for businesses—including now those in Frederick—to access FTZ benefits. The zone now spans 2,000 acres across five zones and one subzone, all designed to support industrial and commercial growth.

The Foreign Trade Zone appeals to a broad industry sector, including manufacturing, logistics, life sciences, technology, retail, automotive, pharmaceuticals, and more. As global competition intensifies, FTZs offer a meaningful advantage for companies sourcing or operating internationally.

For Frederick‑area businesses looking to expand, reduce costs, or optimize supply chains, FTZ #255 represents a valuable opportunity. Use this form to receive additional information or schedule a time to meet with local FTZ administrators.

Manufacturers that import and export could potentially benefit from Foreign Trade Zone #255.