Benefits
for Manufacturing, Distribution and 3PL'S (Third Party Logistics)
Eliminate Duties and Quota Charges: In a FTZ, Customs duties and quota charges
are not paid on merchandise exported.
Defer Customs Duties and Federal Excise Tax: On imports, Customs duties and
taxes can be delayed until merchandise is transferred into US Customs
territory. Importers can store goods in an FTZ indefinitely without paying
duty.
Reduction of Duties: By electing a zone status that Users apply to the lower
duty rate for foreign inputs or finished goods, duties can be reduced.
Avoid Customs Fines & Seizures: Merchandise can be admitted into an FTZ
without markings, visa or quota documentation, while bringing their products or
documentation into compliance with customs regulations.
No Duty on Waste: Products that arrive damaged can be returned, stored in the
FTZ or destroyed without having to pay duty or taxes.
US Quotas: US Quota restrictions do not apply in an FTZ. When a quota opens the
merchandise may subsequently be entered into the US Commerce.
Eliminate Drawbacks: Drawback laws are complex and expensive to administer
Improve Cash Flow and Profitability: Through special Customs procedures such as
Weekly Entry and Weekly Exports, companies can save on Customs transaction fees
and expedite shipments out of an FTZ, thus improving their competitiveness.
Avoid Taxes: No state and local ad valorem taxes apply to foreign merchandise
in an FTZ. IRS and government excise taxes are charged only when they are
entered into the US Commerce.
Reduced Bond & Brokerage Costs: In an FTZ the cost of buying an entry bond
is eliminated, and brokerage fees are reduced because there is no post entry
work.
Local FTZ Advantages:
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Strategically located on the U.S.- Mexico border
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Advanced telecommunications systems for clearing merchandise in and out of the
zone
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Located on a major interstate highway system with international trucking
facilities
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Access to rail facilities serving every major North American market
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Abundant air cargo handlers and facilities at a modern international airport
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Streamlined FTZ procedures for prompt distribution of merchandise
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Tax exemption of inventory held in active zone