What are the benefits of being in a FTZ?
Deferral of Duties: Customs duties are paid only when and if merchandise is transferred into U.S. Customs Territory. The benefit equates to a cash flow savings that allows companies to keep funds available for operations while the merchandise remains in the zone. There is no limit on the length of time that merchandise can remain stored in a zone. Reduction of Duties: In a Foreign-Trade Zone, users may elect a zone status on merchandise admitted to the zone. The zone status determines the duty rate that will be applied to foreign merchandise if it is ultimately entered into U.S. Commerce. This permits FTZ Users to elect the lower duty rate applicable to either the imported parts or the finished product manufactured in the zone. Elimination of Duties: Customs duties are not paid on merchandise exported from a FTZ. Duty is eliminated on foreign merchandise admitted to a zone but subsequently exported from the FTZ. Generally, Customs duties are also eliminated from merchandise that is scr
