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More and more U.S. companies are using Foreign Trade Zones (FTZ) to better manage their global supply chain costs. Here are seven advantages that showcase FTZ as a competitive alternative to a domestic distribution center.
Schedule A Free FTZ Consultation
Duties are only paid when imported merchandise enters U.S. Customs territory. Goods may be held without payment of duty in an FTZ until sold, allowing for improved cash flow.
There are no duties on labor, overhead, or profit to operations performed within an FTZ.
There are no duties on FTZ merchandise that is exported, transferred to another zone, or destroyed. This eliminates the need to manage costly and time consuming duty drawback programs.
Customs allows for weekly entry processing, which benefits importers because they pay a single entry fee and may realize significant MPF savings.
The user may elect to pay the duty rate applicable to the component materials or the finished goods produced from raw materials, depending on which is lower.
Companies that hold goods in an FTZ may be exempt from inventory taxes.
By using an FTZ, the internal controls requirements of the Sarbanes-Oxley Act (Section 404) are met. FTZ and Customs Trade Partnership Against Terrorism (CTPAT) are complementary programs. Participating in both results in increased internal and external security enhancements.
Our FTZ expert will help make FTZ a worry-free process for your company by guiding you through FTZ savings analysis, feasibility studies, application, training, activation, and systems integration, as well as obtaining interim production authority approvals. Discover the advantages of becoming an FTZ today.
Schedule A Free FTZ ConsultationFeasibility studies
Cost/benefit analysis
Software selection and implementation
Application preparation
Project administration and oversight of operators
Employee training
Help with expansion applications and boundary modifications
Help with requests for manufacturing
FTZ compliance reviews
Ongoing FTZ operational and inventory support
Preparing your FTZ procedures manual
Inventory analysis
Establishing FTZ recordkeeping practices
Assistance in securing the FTZ operator’s bond
Help with your U.S. Customs background check
Facilitation of the pre-activation meeting with U.S. Customs