What is a Foreign Trade Zone?

WHAT IS A FOREIGN TRADE ZONE?

What is an FTZ? How can these zones help my business or community? Copper Hill has the answers for you!

A Foreign-Trade Zone (FTZ) is a secure region in the U.S. that is considered outside customs territory while still subject to Customs regulations. Also known as a free-trade zone, FTZs encourage and expedite U.S. participation in international trade by equalizing the treatment of U.S. and foreign trade activities. By allowing U.S. businesses to defer or even eliminate duties related to import and export activities, FTZs help businesses operating in the U.S. save money and be more competitive.

FTZs BENEFIT YOUR BUSINESS

DUTY DEFERRAL
Avoid paying duties on imported merchandise until the merchandise is removed from the FTZ and enters U.S. commerce.

DUTY REDUCTION
Get relief through inverted tariffs when you use imported components in production activity. Apply the lower duty to the foreign content to be competitive with offshore producers.

DUTY ELIMINATION
Avoid duties and drawback on merchandise that is re-exported or destroyed.

REDUCED MERCHANDISE PROCESSING FEES (MPF)
Instead of filing multiple Customs entries per week, file as little as one per week, capping the MPF payment to $538.40 per week or approximately $28k per year.

NO TIME CONSTRAINTS ON STORAGE
Merchandise may remain in an FTZ indefinitely, whether or not it is subject to duty.

MORE EASILY MEET EXPORTATION REQUIREMENTS
Merchandise can be transferred from the Customs territory to an FTZ to satisfy export requirements.

INCREASED SECURITY AND LOWER INSURANCE COSTS
The increased Customs & Border Protection security requirements for FTZs, as well as federal criminal sanctions, not only deter theft but can also lower insurance premiums.

FTZs BENEFIT THE PUBLIC

Creates U.S. employment opportunities.
Boosts state and local development efforts.
Encourages exports.
Attracts offshore and increases domestic activities in the U.S.
Increases security.
Expedites international trade.
Makes a more robust Global Supply Chain for happier end customers.
Provides special Customs & Border Protection procedures to help companies conduct international trade operations in competition with foreign plants.

Copper Hill – Your FTZ experts!

If you are looking for ways to save money on your import and export activities, a Foreign-Trade Zone may be the solution for you. FTZs can help businesses defer or eliminate duties related to these activities, which can save you a lot of money in the long run. Contact the experts at Copper Hill today to learn more about how an FTZ can benefit your business. We would be happy to answer any questions you have and help get you started with this valuable business resource.

FOREIGN-TRADE ZONES

Learn what foreign-trade zones (FTZs) are and how they can benefit both importers and local communities.