FTZ BENEFITS
01. Duty Exemption
No duties or quota charges on re-exports (exception applies for exports to Canada and Mexico under NAFTA). By using a Foreign-Trade Zone, the company avoids the lengthy Customs duty drawback process. No duty is paid on goods destroyed in the zone, which can benefit a company with fragile imports or with manufacturing processes that result in large amounts of scrap.
02. duty deferral
Customs duties and federal excise tax is deferred on imports until they leave the zone and enter the U.S. Customs territory. (Zone merchandise may move in-bond, Zone-to-Zone transfers without payment of duty.) Unlike bonded warehouses or temporary importing under bond programs, there is no limit on the length of time that merchandise may remain within the Zone, whether or not duty is owed.
03. duty reduction
DUTY REDUCTION Where zone manufacturing results in a finished product that has a lower U.S. Harmonized Tariff rate than the rates on foreign inputs, the finished product may be entered into the U.S. Customs territory at the duty rate that applies to its finished condition. Moreover, duty is not owed on labor, overhead or profit attributable to zone production operations.
04. Quota Avoidance
In most instances, imports subject to quota may be retained within a Foreign-Trade Zone once a quota has been reached allowing zone users access to potentially discounted inputs and the ability to admit merchandise as soon as a new quota year starts. Additionally, except for certain textiles, inputs subject to quota may be manipulated or manufactured while in the zone into a product not subject to a quota.
05. Merchandise Processing Fee (MPF) Reduction
MPF is only paid on goods entering the U.S. Customs territory. Zone users are able to file a single entry for all goods shipped from a zone in a consecutive seven-day period instead of one entry file for each shipment (excluding merchandise subject to live entry). MPF fees are charged at %0.3464 of the Total Estimated Value (TEV) of the shipment, with a minimum fee of $26.79 and a maximum fee of $519.76 USD per entry. Fewer entry filings can also reduce Brokerage fees.
06. Streamlined Logistics
Upon approval from Customs, imports may be directly delivered to the zone. Users may also request permission to break and affix Customs seals. A single entry may be filed for seven consecutive days’ worth of entries and exports.
Contact Us
1667 Cole Blvd Ste 400
Golden, CO 80401
303.202.2965
FTZ@jeffcoedc.org