Benefits

Benefits To Your Business

Duty Deferral

• Customs duty & federal excise tax only paid when merchandise is transferred out of the FTZ for domestic consumption
• Imports may be admitted and held in a foreign-trade zone without paying U.S. Customs duties.

Duty Elimination

• Goods may be exported from the FTZ free of duty and federal excise tax
• Goods may be destroyed in a FTZ without payment of duty or federal excise tax
• Duty is not paid on waste or scrap in a FTZ (ie: Exported goods are never entered into the U.S. commerce, thus, import duties are never assessed.)

Duty Reduction

• In a FTZ, you decide which duty rate to pay
• The rate on the component parts as admitted to the FTZ
• The rate on the finished product as removed from the FTZ (Inverted Tariff)
• Imports may be admitted and held in a foreign-trade zone without paying U.S. Customs duties.

Other Benefits Include

• Relief from Quota Limits
• No Constraints on Storage
• Lower Administrative Costs
• Lower Security & Insurance Costs
• Improved Inventory Control

Is a Zone Right For Your Operations?

• If you are concerned about Zone operational issues or regulations, or you think Zones are only suited to a particular industry, consider this:
• Car manufacturing plants, oil refineries, computer manufacturers, and textile distributors are all utilizing Zones. So are companies with as few as 15 employees.

If you are already using another Customs tariff-reduction program, such as Duty Drawback, Temporary Importation Bond, or a Bonded Warehouse, you need to consider U.S. FTZs as a way to streamline your operations, cut down on paperwork, increase your flexibility, and save additional money, all at the same time. Many companies are discovering that Zones more efficiently meet their needs than other Customs programs.