Foreign Trade Zones -
Our value-added services combined with our international trade knowledge allows your company to maximize savings.
More and more companies are using Foreign Trade Zones (FTZ) to better control their global supply chain costs. Here are seven advantages that highlight why an FTZ is a competitive alternative to a domestic distribution center.
1. Duty Deferral. Goods that are held in an FTZ can be held there indefinitely, and incur not payment of duties. Thus this allows for a much improved cash flow.
2. Duty Avoidance. There are absolutely no duties on FTZ merchandise that is exported, destroyed, or transferred to another zone and, as a result, this eliminates the need to manage costly and time-consuming duty drawback programs.
3. Duty Inversion. Depending on which is lowe, the user may choose to pay the duty rate appropriate to the component materials or the finished goods produced from the raw materials.
4. Inventory Tax Incentives. Companies that hold goods in an FTZ are exempt from inventory taxes. Furthermore, certain tangible personal property is exempt from state and local ad valorem taxes.
5. No Duty on Value Added. Any labor, overhead, or profit to operations that are performed within an FTZ are duty-free.
6. Save with One Weekly Entry. Customs allows for weekly entry processing, which benefits importers because they pay Merchandise Processing Fees capped at $485 per week, versus paying on a per shipment basis.
7. Enhanced Security. By using an FTZ, the internal controls requirements of the Sarbanes-Oxley Act (Section 404) are met. Participants in the Customs-Trade Partnership Against Terrorism (C-TPAT) program are eligible for additional Customs benefits.
If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.
By taking advantage of Foreign Trade Zones (FTZ), U.S. companies can save on duty, improve their market competitiveness, and reap the rewards of a more secure supply chain.
Connect legal knowledge, a worldwide pool of suppliers, and expert knowledge of importation and exportation criteria to form an unlimited potential for your business.