Foreign Trade Zone #23

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 U. S. Foreign Trade Zone Program was created by the Foreign-Trade Zones Act of 1934 to facilitate international trade and increase the global competitiveness of U.S. based companies.

General information brochure on Foreign Trade Zones

 

FTZ Benefits

• No duties on re-exports or scrapped goods
• Customs duties 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
• Merchandise Processing Fee Savings

How much could your business save? Click here to download the FTZ Savings worksheet

There are two types of zones:

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

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Regional General-purpose Foreign Trade Zones