Posts by: novasuper

Ten Ways Your Company Can Benefit From Using a Foreign Trade Zone

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  1. Imports may be admitted and held in a foreign trade zone without paying U.S. Custom duties.
  2. FTZ users may pay the duty rate on component material or merchandise produced from component material, whichever is lower.
  3. Customs duties are never paid on merchandise exported from a zone.
  4. Duties are eliminated on materials subject to defect, damage, obsolescence, waste or scrap.
  5. Merchandise may be exported and returned to an FTZ without duty payment.
  6. Spare parts may be stored, returned or destroyed without duty payment.
  7. Delays in Customs duty drawback are eliminated.
  8. Duties are not owed on labor, overhead or profit attributed to FTZ production operations.
  9. Quality control inspections can identify sub-standard good to be destroyed or returned without duty payment.
  10. No duty is owed on in-bond, zone-to-zone transfer of FTZ merchandise.