Foreign Trade Zone

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A Foreign-Trade Zone is a specially designated area, in or adjacent to a U.S. Customs Port Of Entry, which is considered to be outside the Customs Territory of the U.S. The following is a partial list of the many benefits you can attain when using a Foreign-Trade Zone.

Duty Deferral

Duty payments may be deferred.

Drawback Duties

Approved drawback duties are payable at the time of receipt into an FTZ.

Reduced Duty Rates

Ability to take advantage of reduced duty rates on imported goods during the time they are warehoused with the FTZ.

U.S. Quotas

Merchandise subject to import quotas may be held at an FTZ.

Inverted Tariff

Minor assembly of merchandise is permissible, allowing importer the duty rate applicable to either the components, parts, or finished product.

Increased Flexibility

Goods may be stored in an FTZ for unlimited periods; there are no limitations as experienced when using an approved U.S. Customs Bond or General Order (G.O.)

Merchandise Processing Fees

Possible savings for Merchandise Processing Fees (MPF).