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FOREIGN TRADE ZONE OPERATION

Foreign Trade Zone Competitive Advantages

What is a Foreign-Trade Zone?
A foreign-trade zone is a designated site licensed by the Foreign-Trade Zones (FTZ) Board at which special customs procedures may be used. These procedures allow domestic activity involving foreign items to take place prior to formal customs entry. Duty-free treatment is accorded items that are re-exported and duty payment is deferred on items sold in the U.S. market, thus offsetting customs advantages available to overseas producers.

If your company is engaged in manufacturing and/or global trade, locating in Foreign Trade Zone #93 and #214 can improve your cash-flow and save you money. Here's how:

  • Deferred Duties: You pay no customs duty or excise taxes while your merchandise is kept in our FTZs, and there is no time limit on how long it can stay.
  • Exhibit & Display without Duty: You can establish a sales display/exhibit center in our FTZs without paying duty on displayed products.
  • Duty Exemptions on Re-Exports: You pay no customs duty or excise taxes on your product if it is exported from the U.S.
  • Inverted Tariff Relief: The lower duty applies when you bring foreign merchandise into our FTZs and manufacture a product with a lower duty rate.
  • Domestic Content Exemption: Duties apply only to foreign content of your product manufactured in our FTZs.
  • Local Ad Valorem Tax Relief: Foreign merchandise stored in our FTZ is exempt from state and local ad valorem taxes.
  • No Duty on Defective or Rejected Components