At FTZ Strategies we match our small to mid-size import/export clients with Foreign-trade zone (FTZ) programs that have the potential of offering sizable cost savings and other benefits by significantly reducing customs duties, taxes and tariffs; improve global market competitiveness; and minimize government regulations.
Foreign Trade Zone Benefits
Duty Exemption – No duties or quota charges on re-exports.
Duty Deferral – CBP duty and federal excise tax, if applicable, are paid only when the merchandise is transferred from the zone for consumption.
Duty Reduction – Finished products manufactured or assembled in an FTZ from imported components may be subject to a lower rate of duty. A manufacturer may elect to pay duty on the component parts or the finished product, whichever rate is lower.
Duty Elimination on Waste, Scrap And Yield Loss – Imported raw materials lost as waste, scrap or other result in the
processing or manufacturing process is not considered imported, and therefore no duty is paid on that portion when the
finished product ships into the U.S.
Weekly Entries – Zone users may file one entry as opposed to multiple entries throughout the week, significantly
reducing paperwork, time and expense.
Zone-To-Zone Transfer – Merchandise may be transferred under bond from one FTZ to another with duties paid only
when the merchandise is finally admitted into U.S. Customs territory.
Quality Control – The FTZ may be used for quality control inspections to ensure only acceptable products are imported,
with substandard goods being destroyed or returned before duty is paid.