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Geo zone
Geo zones are customized zones used in calculating shipping and taxes. Multiple countries and zones can be added to one geo zone to customize shipping methods.
The geo zone below is used to combine the UK VAT Zone of the United Kingdom into one zone. The UK VAT Zone of the UK consists of some states. Each individual state is added by selecting the Country, Zone, then clicking "Add Geo Zone".
See Shipping for more information on how geo zones are used.