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Foreign Trade Zone (FTZ) Benefits Continued


  • Inspection and Sampling - Buyers may inspect and sample goods displayed in a zone showroom.
  • Inventory Taxes - Most taxing authorities exempt all merchandise in an FTZ from inventory taxes.
  • Cargo Insurance – Users can negotiate reduced cargo insurance rates because of decreased risk.
  • Zone-to-Zone Transfer – users can transfer merchandise between zones duty-free if the merchandise is in-bond.Customs duty is not owed until the product is shipped into Customs.
  • Compliance with Federal Laws - Government agencies such as the FDA, DOT, EPA, and the USDA have laws that may not apply to merchandise in an FTZ.
  • Enterprise Zone Coordination - FTZs with Enterprise Zones offer enhanced financial advantages.
  • Transfer of Title - Title to merchandise may be transferred as long as there is not a retail sale.
  • Value Added Savings - Labor, overhead and profit from production operations are not subject to duty.
  • Changing Circumstances - As U.S. laws and especially Customs laws change, involvement in an FTZ allows a firm greater flexibility in addressing changing circumstances.
  • Exhibition - Merchandise can be held for exhibition to customers without duty payment.

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