How do you become a foreign-trade zone?

How do you become a foreign-trade zone?

According to the FTZ Board, a foreign-trade zone is created when “a local organization, such as a city, county or port authority, applies to the FTZ Board for a grant to establish and operate a zone to serve a specifically defined geographic area.” Upon approval of the zone by the FTZ Board, the organization becomes …

How many foreign-trade zones are there in the US?

There are 186 active FTZs in the United States. More than 2,900 companies currently utilize the program. FTZs provide significant advantages for U.S.-based firms: Duty Deferral: Customs Duties are paid only if and when goods are transferred out of the Zone and into U.S. Customs territory.

How does a foreign-trade zone work?

Foreign-Trade Zones allow companies to bring items onto US soil without paying the duty tax, allowing them to store these goods free of tariff charges, or use parts to manufacture a finished product that can then be exported without the US import/export surcharges.

Who is in charge of a foreign-trade zone?

US Customs and Border Protection
FTZs operate under the oversight and supervision of US Customs and Border Protection, as part of the United States Homeland Security Council. Even though FTZs are considered to be outside the Customs territory of the United States, they are on US soil.

Why do companies use foreign trade zones?

Why do companies use foreign trade zones? To maintain the cost competitiveness of their U.S.-based operations vis-a-vis their foreign-based competitors. For a company, zone status provides an opportunity to reduce certain operating costs associated with a U.S. location that are avoided when operating from a foreign site.

What does foreign trade zone stand for?

In the United States, a foreign-trade zone (FTZ) is a geographical area, in (or adjacent to) a United States Port of Entry, where commercial merchandise, both domestic and foreign receives the same Customs treatment it would if it were outside the commerce of the United States.

Where are foreign trade zones located?

A foreign-trade zone is a secured area under U.S. Customs’ supervision that is generally considered outside United States territory (for commerce purposes) upon activation. A foreign-trade zone is typically located in or near a U.S. Customs port of entry and falls under the authority…