What is A Foreign-Trade Zone?

WHAT IS A FOREIGN-TRADE ZONE?

A FOREIGN-TRADE ZONE IS A SPECIALLY DESIGNATED AREA, IN OR ADJACENT TO A U.S. CUSTOMS PORT OF ENTRY, WHICH IS CONSIDERED TO BE OUTSIDE THE CUSTOMS TERRITORY OF THE U.S.

THE FOLLOWING IS A PARTIAL LIST OF THE MANY BENEFITS YOU CAN ATTAIN WHEN USING A FTZ OR SUBZONE:

NO DUTY IS EVER PAID ON RE-EXPORTED MERCHANDISE.

IF THE MERCHANDISE IS SOLD DOMESTICALLY, NO DUTY IS PAID UNTIL IT LEAVES THE ZONE OR ZONES.

NO DUTY IS PAID ON WASTE.

DUTY ON SCRAP IS ELIMINATED OR REDUCED.

GENERALLY, IF FOREIGN MERCHANDISE IS MANUFACTURED INTO A PRODUCT WITH A LOWER DUTY RATE, THEN THE LOWER DUTY RATE APPLIES ON THE FOREIGN CONTENT WHEN DUTY IS PAID.

MERCHANDISE IN A ZONE MAY BE STORED, REPACKAGED, MANIPULATED, MANUFACTURED, DESTROYED OR OTHERWISE ALTERED OR CHANGED.

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	NO DUTY IS EVER PAID ON RE-EXPORTED MERCHANDISE.
	IF THE MERCHANDISE IS SOLD DOMESTICALLY, NO DUTY IS PAID UNTIL IT LEAVES THE ZONE OR ZONES.
	NO DUTY IS PAID ON WASTE.
	DUTY ON SCRAP IS ELIMINATED OR REDUCED.
	GENERALLY, IF FOREIGN MERCHANDISE IS MANUFACTURED INTO A PRODUCT WITH A LOWER DUTY RATE, THEN THE LOWER DUTY RATE APPLIES ON THE FOREIGN CONTENT WHEN DUTY IS PAID.
	MERCHANDISE IN A ZONE MAY BE STORED, REPACKAGED, MANIPULATED, MANUFACTURED, DESTROYED OR OTHERWISE ALTERED OR CHANGED.