FOREIGN TRADE ZONE (FTZ)
Definition: To provide for the establishment, operation, and maintenance of foreign trade zones into ports of entry into the United States to expedite and encourage foreign commerce.
How JBE can assist you: However, in short listed below are the benefits of selecting a warehouse provider that is bonded, and considered an FTZ campus.
- Duty Deferral: (This is usually the # 1 benefit, as this element creates a stronger cash flow for the company importing the commodity.) Savings are realized in "COST OF FUNDS".
- Duty elimination of Exports: (If you bring in a commodity from off shore, and the product never leaves the FTZ, then duty will not have to be paid at all. It would be as if the product never entered into the commerce of the United States.) You pay no duty on scrap, waste, or destroyed merchandise.
- Duty reduction (inverted tariff relief). Zone status depends how duty is paid. It’s based on:
- - Duty rate is applicable to the material as admitted or,
- - Duty rate as applicable to the finished product as removed from the zone and in to the US commerce.
- - Duty rate can depend on which is lower—"inverted tariff".
Need Foreign Trade Zone (FTZ) services?
Contact us to discuss how JBE can provide your organization with quality Foreign Trade Zone (FTZ) solutions!