Pay Customs duties when the product leaves your site instead of paying at the port of entry. Duties may be deferred by only paying if and when merchandise is transferred into U.S. Customs territory.
Leverage a manufacturing setting to potentially pay the lower customs duties by manufacturing the finished in Foreign-Trade Zone 100 or by foreign inputs. You decide which duty rate to pay, either the rate on component parts admitted to the FTZ or the rate on finished products removed from FTZ.
Goods may be imported and re-exported from the FTZ free of duty and federal excise taxes. Duties are reduced or eliminated on materials subject to defect, damage, obsolescence, waste, and scrap, including scrap exported to a buyer.
Build a more efficient operation with supply chain advantages, money management tools, and dramatically smoother logistics. FTZ 100 is ready to support your business with assistant from existing staff, reduced paperwork requirements, and smoother logistics.
Alternative Site Framework (ASF) Program
The United States Foreign Trade Zone Alternative Site Framework Program allows you to become an active zone right at your present location. The Foreign Trade Zone ASF is a great economic development incentive for your local companies.
- Simple streamlined application process
- Faster access to FTZ benefits – your site can be approved in approximately 30 days!
For more information: Contact Us
Frequently Asked Questions
Each company needs to conduct their own internal evaluation to determine if an FTZ is correct. FTZs are useful for a number of industries, from pharmaceuticals to footwear companies to electronics and companies with as few as 15 employees.
To maintain the cost competitiveness of their U.S. based operations. FTZs provide an opportunity to avoid certain costs associated with a U.S. location that are avoided when operating from a foreign site.
A Foreign-Trade Zone or FTZ is a restricted-access site that is treated, as it relates to tariffs and Customs procedures, as being outside the Customs territory of the United States. Merchandise may enter the FTZ without a formal Customs entry, payment of Customs duties, or payment of federal excise taxes.
The Alternative Site Framework (ASF) is a new FTZ approach that enables the zone to be marketed and the FTZ benefits brought to companies at their existing place of business.
There are two types of sites within an FTZ:
- Magnet Sites are designated to attract future business and are very similar to current GPZ sites, both in function and application process. It can take up to 10 months for approval and offers a 5-year sunset limit.
- Usage-Drive sites are designated specifically for one company. the very brief and easy application process can be approved in as little as 30 days and has a 3-year sunset limit.
Before FTZ procedures can be used at an approved FTZ site, the operator must request ‘activation’ from local U.S. Customs and Border Protection. Activation requests should include the following:
- Letter on company letterhead signed by a company officer requesting the need for FTZ activation
- Letter from Greater Dayton Foreign Trade Zone, Inc. supporting the activation request
- Qualifications, character and experience of an operator, principle officers and/or key employees that are responsible for the zone are of critical importance. The activation request must therefore include completed background investigation forms on company officers and key FTZ personnel including any employee that has access or could cause charges to the inventory and record keeping system. Question on this form should be answered with complete honesty. If the background investigation discloses derogatory information, including omissions and falsehoods, the Port Director may deny the request.
- A blueprint of the area to be activated
- An Operator’s Procedure Manual describing the inventory control and record keeping system that will be used in the zone
Review of Request
- As a condition of approval of the request, the Port Director will order an inquiry by a Customs officer into the security, suitability and fitness of the facility to receive merchandise in zone status. The surveying officer may prepare a survey report addressing Customs physical and procedural standards. (Cargo Security Survey)
- The Port Director in making a decision whether to approve the request may consider other factors. (ex. sell of firm to another party prior to approval; demonstration of inability or unwillingness to comply with the law; regulations or grant conditions)
Decision on Request
- The Port Director shall promptly notify the applicant in writing of the decision to approve or deny the request to activate. If denied, the notification will state the grounds for denial. The decision of the Port Director will be the final CBP administrative determination in the matter.
- On approval of the request, an FTZ Operators’ Bond shall be executed on CBP For 301, containing the bond conditions of Section 19 CFR 113.73.
- Upon the Port Director’s approval of the request and acceptance of the executed bond, the zone site will be considered activated and merchandise may be admitted to the zone inn zone status.
At an FTZ merchandise can be:
- Manufactured, with a separate request
We serve up to 60 miles (96.5606 kilometers) from the Dayton International Airport. View our interactive service area map for more detailed information.
If you already use other Customs tariff-reducing programs, an FTZ may be a method to streamline operations by reducing paperwork, saving additional money, and increasing flexibility.
A one-time application fee of $10,000 covers legal fees, operating agreement, and employee oversight. A one-time activation fee of $5,500 covers written request for site inspection, a blueprint of the area to be activated, and on-site inspection by U.S. Customs. An annual fee of $10,000 covers zone maintenance including marketing, training, insurance, bonds, and fees.
Sites can reduce costs by submitting weekly entry reports. The Merchandise Processing Fee (MPF) is 0.21% of the Total Estimated Value, with a maximum fee of $485 per entry. The de-activation fee is $3,000.
Once you contact us to begin the process, we will help you through the two major phases: Application and Activation.
The application requires
- Site address
- Site’s acreage
- Company at the site and company’s activities
- Type of site, zoning, and existing/planned buildings
- Site owner
- Legal description for site’s land
- Site plan, including a map with legible landmarks or streets
- U.S. Customs on-site evaluation and site inspection for FTZ suitability
- Blueprint of the area to be activated
- Procedure Manual that documents inventory control and record-keeping
- A Written Activation request
Use the contact form on our website or call 937.454.8216 and we will respond as soon as possible.