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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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