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

DUTY REDUCTION

DUTY ELIMINATION

DUTY DEFERRAL

STREAMLINED LOGISTICS

INVENTORY CONTROLS

SUPPLY CHAIN RESPONSIVENESS

WATCH OUR QUICK EXPLANATORY VIDEO

FOREIGN TRADE ZONES-480p-8ed762e0-53e3-4c72-91fd-3f9a68e77474

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

DUTY REDUCTION

FTZ users may elect to pay duties at either the rate of the foreign inputs used or the rate applied to the finished product – which is often lower. With inverted tariffs, FTZ users have the freedom to pay the lower duty rate for a finished good.

DUTY ELIMINATION

No duties are paid on merchandise exported from an FTZ.

DUTY DEFERRAL

Duties are paid only if and when goods are transported out of the zone and into the U.S. Customs territory. Improve cash flow with deferred duty payments!

STREAMLINED LOGISTICS

Instead of filing an entry every time a shipment enters the U.S., a user can file one Customs entry a week – reducing the number of entry filings.

INVENTORY CONTROLS

Users of an FTZ have the ability to better manage your inventory in a controlled warehouse.

SUPPLY CHAIN RESPONSIVENESS

Achieve increased inventory turn, better traceability, and shorter cycle times.

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.