Ten Ways Your Company Can Benefit From Using a Foreign Trade Zone
| By novasuper | 0 Comments
- Imports may be admitted and held in a foreign trade zone without paying U.S. Custom duties.
- FTZ users may pay the duty rate on component material or merchandise produced from component material, whichever is lower.
- Customs duties are never paid on merchandise exported from a zone.
- Duties are eliminated on materials subject to defect, damage, obsolescence, waste or scrap.
- Merchandise may be exported and returned to an FTZ without duty payment.
- Spare parts may be stored, returned or destroyed without duty payment.
- Delays in Customs duty drawback are eliminated.
- Duties are not owed on labor, overhead or profit attributed to FTZ production operations.
- Quality control inspections can identify sub-standard good to be destroyed or returned without duty payment.
- No duty is owed on in-bond, zone-to-zone transfer of FTZ merchandise.
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