FOREIGN TRADE ZONES2019-12-12T14:14:53+00:00

foreign trade zones

Foreign Trade Zones are secure areas within the United States that are considered to be outside of U.S. Customs territory for tariff purposes.

Operating under the oversight and supervision of the U.S. Customs and Border Protection (CBP), FTZs are subject to all other U.S, state, and local laws.

CURRENTLY, MORE THAN 2,900 COMPANIES IN THE UNITED STATES ENJOY THE FOLLOWING TRADE BENEFITS

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FTZ MANAGED SERVICES

  • Visibility into Zone Activity

  • Zone Personnel

  • Audit & Inspection Support

  • FTZ Implementation

  • Trade Zone Software

  • Integration w/ Client ERP

foreign trade zones

BENEFITS FOR INTERNATIONAL BUSINESSES

POWERED BY

TOP PRODUCTS IN FTZS

  • Oil & Petroleum

  • Vehicles & Parts

  • Consumer Electronics

  • Consumer Products

  • Pharmaceuticals

  • Machinery & Parts

  • Heavy Equipment

  • Textiles & Footwear

  • Other Electronics

WHAT OPERATIONS CAN BE DONE IN AN FTZ?

STORAGE
INSPECTION
TESTING, REPAIR
DISTRIBUTION
RELABELING
REPACKAGING
DISPLAY
MANUFACTURING*
ASSEMBLY*
PROCESSING*
DESTRUCTION

*May require specific FTZ Board approval

let’s take a look at an example

ABC Chocolate is a United States chocolatier, manufacturer & distributor of the industry’s machinery.**

ABC has an average sales of 10,000 machines annually.

COMPONENT MACHINE PARTS FROM ITALY VALUED AT $10,000 HAVE 2.8% DUTY.

$10,000 x 2.8% = $280 in duty per machine
if imported on a standard consumption entry

but…

COMPLETED MACHINED FROM ITALY HAVE 0% DUTY

ABC has the option to import component parts, complete the manufacture of the machines in a Foreign Trade Zone and file a consumption entry for the completed machine at $0 duty.

$280 SAVINGS PER MACHINE

$2,800,000 IN SAVINGS PER YEAR

*This example doesn’t include any tax savings.
**Section 301 is not eligible for benefit currently.

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