FTZ Video Transcript
Could your company benefit from delayed or reduced duty payments? Could streamlined customs procedures help your bottom line? Have you heard of the Foreign Trade Zones program? No? Then keep watching!
Foreign Trade Zones, or FTZs, are special areas in the United States that allow companies to reduce import duties and other costs. While most FTZs are located near ports of entry, you don’t have to relocate your facility to a special location to use the FTZ program. With FTZs located in all 50 states and Puerto Rico, we can bring FTZs to you.
But what exactly can you do in an FTZ? FTZ approval can allow for a range of activities involving imported goods such as warehousing, manufacturing, and more.
What are the benefits of conducting your business in an FTZ? There are plenty of benefits! First, when you bring components into your FTZ, you don’t have to pay U.S. customs duties on imported goods that are later exported. FTZ approval can also allow streamlined customs procedures. With FTZ approval, the goods that you sell in the U.S. may also benefit from deferred duty payments and, for goods manufactured in an FTZ, possibly lower duties rates.
What else do I need to know to decide if the FTZ program is right for me? You will work with the closest local FTZ-sponsoring “grantee” organization to apply for FTZ approval at your company’s warehouse or manufacturing facility. Once approved, your facility will need authorization by CBP before you can begin receiving merchandise. FTZ benefits and costs will vary by company. You can talk to your local FTZ sponsoring grantee about how to estimate the costs of being designated an FTZ.
FTZs encourage domestic manufacturing by helping companies in the U.S. compete more effectively in the global marketplace. Not only do they save you money, but they also help to create and maintain local employment. By keeping your business and investment in the United States, you are helping to promote U.S economic growth. If you have any questions or would like more information, please contact your closest FTZ-sponsoring grantee or the U.S. Department of Commerce’s Foreign Trade Zones Office at 202-482-2862, or at ftz@trade.gov.
