| Benefits of a FTZ
A Foreign-Trade
Zone provides users with the opportunity to lower costs and boost
profits. How much a company gains by having operations in a FTZ
varies but the following are some of the key benefits:
Improved Cash Flow: By delaying, reducing
or eliminating duties, money can be available for other needs.
Logistical Flexibility: Goods may be
transferred from U.S. ports of arrival to a FTZ or between FTZs
duty free. If the products are re-exported, no duty is paid. Products
made overseas for overseas markets may be brought into a FTZ for
storage or consolidation with other products, allowing distribution
of complete shipments to customers.
Duty Reduction: In many cases, duties
are higher for parts than for finished products. Therefore in a
FTZ, a company can import parts duty-free, assemble a product, and
then only be required to pay the duty on the final product.
Lower Taxes: Goods in a FTZ normally
avoid federal excise taxes.
Weekly Entry: The Trade and Development
Act of 2000 contains a provision permitting FTZ "Weekly Entry"
procedures which can help zone users save time and money. The provision
allows users to file entries and pay fees on goods moving though
the zone once a week, rather than once a day or multiple times each
week as had previously been the case.
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