Foreign Trade Zone

Foreign Trade Zones (FTZ) are secure areas located in or near U.S. Customs ports of entry that are legally considered to be outside the U.S. Customs and Border Patrol territory for the purpose of tariff laws and Customs entry procedures. The ECIDA administers Foreign Trade Zone #23 for Erie County.

Foreign Trade Zone #23 - Fact Sheet There are two types of zones: General-purpose zones Subzones

General-purpose zones involve public facilities that can be used by more than one firm, and are most commonly ports or industrial parks used by small to medium sized businesses for warehousing/distribution and some processing/assembly.

Subzones typically involve a single firm's site which is used for more extensive manufacturing/processing or warehousing/distribution that cannot easily be accomplished in a general-purpose zone.

Benefits:

• No duties or quota charges on re-exports.

• Customs duties and Federal Excise Tax deferred on imports.

• In situations where zone manufacturing results in a finished product that has a lower duty rate than the rates on foreign inputs (inverted tariff), the finished products may be entered at the duty rate that applies to its condition as it leaves the zone -- subject to public interest considerations.

• Foreign goods and domestic goods held for export are exempt from state/local inventory taxes. FTZ status may also make a site eligible for state/local benefits which are unrelated to the FTZ Act.

Applications for New Subzones

If you are interested in establishing a foreign trade subzone within Erie County please contact the ECIDA International Division at 716-856-6525. Applications for a zone can be rather complex and each applicant can expect a somewhat lengthy approval process, perhaps a year or more. Once a zone is granted by the Foreign Trade Zone Board, the zone operator shall make written application to the Customs Port Director to obtain approval for activation of a zone.

 Click here to download the FTZ Savings Calculator (PDF)

To take advantage of existing General-purpose zones, contact: