Should your company consider FTZ??
What is a Foreign-Trade Zone?
A FTZ is the U.S. Version of an International Free Trade Zone. Always located near a Port of Entry, an FTZ can be used to store foreign or domestic goods, re-package materials, assemble products, manufacture or re-export goods without paying Customs duties. Merchandise can be held indefinitely within an FTZ without any payment of Customs duty. A U.S. Department of Commerce program born in 1934, FTZs are operated as public utilites by states, port authorities, other political groups, or corporations charted by the state.
What are the types of zone sites?
- General Purpose/Magnet Sites are usually located at ports or industrial parks. They are open to multiple zone users. This FTZ is for both long-term or occasional use. Airports and international convention centers are often set up as public FTZ sites as well.
- Subzones/Usage-driven sites are approved for a specific company/use. Individual companies can apply to the U.S. Department of Commerce to designate an area of their facility as a Subzone. This situation is ideal for companies located some distance from a General Purpose Zone.
FTZ Advantages?
- You can ship, store, assemble, or manufacture merchandise from FTZs.
- Zones also offer employment opportunities and stimulate trade.
- Using a FTZ offers relief from inverted tariff and duty exemption on re-exports and the cash flow cost savings will be of great value to your organization.
For more information: global reach (includes video) and US Trade Zones
FTZ locations – USA list Contacts for: Minnesota; South Dakota; North Dakota; Iowa; Wisconsin; Missouri
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