Foreign Trade Zone
A Foreign Trade Zone is a specially designed area, in or adjacent to a U.S. 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 Foreign Trade Zone or Subzone:
- No duty is ever paid on re-exported merchandise from a zone.
- If the merchandise is sold domestically, no duty is paid until it leaves the zone or zones.
- Generally, if foreign components are manufactured into a product which has a lower duty rate, then the lower duty applies. No duty applies to domestic content.
- Both foreign and domestic merchandise in a zone may be stored, repacked, manipulated, manufactured, processed, destroyed, or otherwise altered or changed.
- Generally, when foreign merchandise is sold to the U.S. Government, no duty is charged.
- Duty Exemptions on re-exports
- Relief From Inverted Tariffs
- Duty Elimination on Waste and Scrap
- No Duty on Rejected or Defective Parts
- Duty Deferral
- No Duty on Domestic Content or Value Added
- Relief From Local and Ad Valorem Taxes
- No Duty on Sales to the U.S. Military or NASA
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Check out information on Foreign Trade Zones in the IMEX Exchange
Foreign Trade Zone Corporation - for more information call (251)471-6725. |
