Becoming an FTZ could save you thousands in duties, merchandise processing fees (MPF), and more.

The Power of Foreign Trade Zones

More and more U.S. companies are using Foreign Trade Zones (FTZ) to better manage their global supply chain costs. Here are seven advantages that showcase FTZ as a competitive alternative to a domestic distribution center.

Duty Deferral

Duties are only paid when imported merchandise enters U.S. Customs territory. Goods may be held without payment of duty in an FTZ until sold, allowing for improved cash flow.

Duty Avoidance

There are no duties on FTZ merchandise that is exported, transferred to another zone, or destroyed. This eliminates the need to manage costly and time consuming duty drawback programs.

Duty Inversion

The user may elect to pay the duty rate applicable to the component materials or the finished goods produced from raw materials, depending on which is lower.

Inventory Tax Incentives

Companies that hold goods in an FTZ may be exempt from inventory taxes.

No Duty on Value Added

There are no duties on labor, overhead, or profit to operations performed within an FTZ.

Save with One Weekly Entry

Customs allows for weekly entry processing, which benefits importers because they pay a single entry fee and may realize significant MPF savings.

Enhanced Security

By using an FTZ, the internal controls requirements of the Sarbanes-Oxley Act (Section 404) are met. FTZ and Customs Trade Partnership Against Terrorism (CTPAT) are complementary programs. Participating in both results in increased internal and external security enhancements.

Schedule A Free FTZ Consultation

Meet The Expert

Our FTZ experts make FTZ a worry-free process for your company by guiding you through FTZ savings analysis, feasibility studies, application, training, activation, and systems integration, as well as obtaining interim production authority approvals. Discover the advantages of becoming an FTZ today.

Schedule A Free FTZ Consultation

Cindi Kavanaugh

LCHB, CCS, CCLS, CES

Senior Advisor
716.901.0811

Schedule A Free FTZ Consultation

FTZ Consulting Services

Feasibility studies

Cost/benefit analysis

Software selection and implementation

Application preparation

Project administration and oversight of operators

Employee training

Help with expansion applications, boundary modifications, and requests for manufacturing

FTZ compliance reviews

Ongoing FTZ operational and inventory support

Preparing your FTZ procedures manual

Inventory analysis 

Establishing FTZ recordkeeping practices

Assistance in securing the FTZ operator’s bond

Help with your U.S. Customs background check

Facilitation of the pre-activation meeting with U.S. Customs

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