Foreign Trade Zone Is Another Word for Experience

At Foreign Trade Zone, we’ve been helping corporations take advantage of the Foreign Trade Zone program since we were established in 1979. As a general purpose zone, were situated in the heart of one of the country’s fastest growing airports.

Because we are strategically located near all major distribution channels (air, land, sea and interstate) we are ideally suited to meet your business needs. Our experienced personnel and the areas Customs Brokers are available to help you with everything from paperwork to regulation information to help you maximize the FTZ benefits for your business.

9 Reasons to Use Foreign Trade Zones

1. When imported material has incorrect country of origin markings, you can avoid fines and penalties by entering merchandise into the zone and remarking or re-labeling it before making a U.S. Customs entry.
2. Merchandise entering through the zone is not subject to state, local ad valorem or inventory taxes.
3. Merchandise can be transferred to the zone and held until a quota is opened. The benefit is a quicker response time because the merchandise is already in the U.S.
4. Parts subject to quota may be manipulated or processed to create a product that is not subject to quota.
5. Because insurance does not have to include Customs duties, costs are reduced.
6. Exports returned if items are not registered with U.S. Customs, you can return merchandise to the Foreign Trade Zone and eliminate duties.
7. Foreign Trade Zones contribute to quality control by ensuring that U.S. standards are met. Items below standards can be repaired, returned or destroyed.
8. Merchandise can be transferred from one zone to another, to a subzone, or removed from a zone temporarily for certain activities.
9. Zones are subject to U.S. Customs supervision and security requirements.

A Closer Look at How the Savings Work

• Defer Costs through Warehousing and Distribution
• When merchandise is stored in the Foreign Trade Zone, you are not required to pay Customs duties until the items leave the zone and enter U.S. territory. By deferring these costs, you improve your cash flow and save on interest expense
• Reduce Costs through Assembling, Processing, Manipulating or Manufacturing
• The rate of duty is based on either imported materials or finished products. Because finished products often have lower duty rates, you can reduce costs by choosing this option. Merchandise in a zone can be stored, sampled, displayed, tested, cleared, re-labeled, repacked, repaired, mixed, assembled, processed, and manufactured.
• Eliminate Costs through Exporting and Destroying
• When merchandise is exported to another country, it never enters U.S. Customs territory, and Customs duties are not paid. Therefore duty drawback is not necessary. Additionally, if merchandise is defective, damaged, scrapped, waste or obsolete, it can be re-exported or destroyed to eliminate duty.

Reduce Operating Costs through Foreign Trade Zones

Few government programs have been more instrumental in attracting international trade throughout the United States than Foreign Trade Zones. In fact, the total value of merchandise moving through Foreign Trade Zones exceeds several hundred billion dollars annually. Why the success? In short, merchandise can be admitted to a zone without a formal Customs entry or payment of Customs duties or government excise taxes. This ability to defer, reduce or even eliminate the payment of Customs duties is a benefit that thousands of U.S. companies take advantage of every year.

We Have Plenty of Site Options Available

Because businesses today have specialized needs, we offer a number of building and land options. To begin with, we offer almost unlimited lease options (office, distribution center or warehouse) or a build to suit from any of the airport developers. Land is available for companies wising to build their own facilities, and sub-zone status is available off-airport locations.