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Foreign Trade Zone (FTZ) Benefits


  • Cash Flow - Inventory can be held in the zone duty-free until shipped to the customer.
  • Exports - No custom duties are paid on merchandise exported from an FTZ.
  • Defects/Damage/Waste -Customs duties are not paid on merchandise subject to these losses.
  • Inverted Customs Duty Savings- Unique to an FTZ, is the importer's option to pay the duty rate applicable to either the parts or the finished unit, depending on which is lower.
  • International Returns - No custom duties are paid upon return of exported merchandise.
  • U.S. Quota - Most quota-restricted goods can be held in an FTZ and shipped when the quota opens.

 

  • Spare Parts - Spare parts may be held in the FTZ without Customs duty payment.
  • Temporary Removal Procedure - Merchandise may be removed from an FTZ into Customs territory in-bond for certain activities, and returned to the FTZ without Customs duty payment.
  • Quality Control - Only merchandise that meets specifications is imported and duty paid.
  • Country-of-Origin - Depending on the processes, goods may be eligible for Made in USAŠ labeling.
  • Security - Many firms find the required Customs Service supervisions and security to be quite beneficial.
  • Re-labeling or Remarking - Goods may be altered to meet federal or local requirements and submitted to Customs for proper classification.

    More Benefits
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