Drew's company imports materials and parts into a free trade zone (FTZ) within the United States and then exports finished products to other countries. Her company will:
A. incur higher labor costs than other domestic companies.
B. not be able to store finished goods with the FTZ.
C. have to pay tariffs based on the value of both the parts and materials.
D. have to pay tariffs based on the value of the finished products when they leave the country.
E. not have to pay tariffs on the imported materials and parts.
Answer: not have to pay tariffs on the imported materials and parts.