Foreign Trade Zone
The Foreign Trade Zone (FTZ) program was created by the U.S. government to facilitate international trade and increase the global competitiveness of U.S. based companies. The program, which has existed since the 1930’s, continues to thrive and change to better meet the needs of American companies in the global economy.
What is an FTZ?
A U.S. Foreign Trade Zone is a site within the United States, in or near a U.S. Customs port of entry, where foreign and domestic merchandise is considered to be outside the country, or at least, outside of U.S. Customs territory. Certain type of merchandise can be imported into a Zone without going through formal Customs entry procedures or paying import duties. Customs duties and excise taxes are due only at the time of transfer from the FTZ for U.S. consumption. If the merchandise never enters the U.S. commerce, then no duties or taxes are paid on those items.
What Can Occur Within a Foreign Trade Zone?
Foreign and domestic merchandise permitted in a zone may be stored, sold, exhibited, broken up, repacked, assembled, distributed, sorted, graded, cleaned, mixed with foreign or domestic merchandise, otherwise manipulated, destroyed, or be manufactured without being subject to U.S. Customs laws. This exemption does not apply to machinery and equipment that is imported for manufacturing use or the like within a zone.
FTZs provide users with the opportunity to lower costs and boost profits through duty savings benefits. Contact us today to find out how our FTZ can benefit your company.