Warehousing

Distribution

Logistics

 

Warehousing                   

Distribution
Foreign Trade Zones

What is an FTZ?

Benefit Examples   

Weekly Entry

FTZ vs. Bonded

Customs

Locations

Facility Descriptions

Directions

Detroit

Long Beach

Ontario

San Diego

New Orleans

Contact Us!

LME Metal Warehousing
 Metro Intranet
 
Duty Deferral:
Duty on goods may be deferred on goods indefinitely until the product leaves the FTZ for U.S. consumption.
Article Description: Copper Clad Laminate
Annual Dollar Volume: $21.6 Million
Duty Rate: 3.5%
Annual Duty Liability: $756,000
Cost of Money: (estimate) 10%
Annual savings if Article not entered in U.S.: $75,600
/365 days per year: $207
Average number of days article remains in inventory: 90
FTZ Savings on article through duty deferral: $18,641

 

Lower Duty Rates
A manufacturer may elect to pay duty on the imported components or the finished good whichever is lower.

Duty Elimination Savings Example:
Annual dollar volume exported $8 million
Duty Rate 9.6%
Annual FTZ Savings on articles through duty elimination on exports: $768,000

 

Made in the ‘USA’ Label
Since U.S. added value is not subject to duty, a manufacturer that adds U.S. content to the foreign product at a rate of 51% or more may qualify for the Made in the ‘USA’ Label thus avoiding duty all together.

Ease of Paperwork & Quick Turnaround.
By using a foreign-trade zone, placing foreign (bonded) products in an FTZ doesn’t require complicated warehouse entry procedures and domestic merchandise may be admitted with a simple packing list.

Quota Restrictions Avoidance
Quota merchandise may be stored in a Foreign-Trade Zone duty-free until the next quota period re-opens.

Temporary Removal
Products may be removed from a foreign-trade zone for 120 days while under bond for repair or exhibition.

Tax Savings
In a contract or bonded warehouse, inventory taxes are levied on January 1st of each year on all merchandise. In a foreign-trade zone, foreign merchandise is not taxed and domestic merchandise held for export is not subject to any state or local ad valorem taxes.

Avoid Fines & Penalties
The foreign-trade zone offers importers the unique ability to interact with their merchandise prior to Customs review, thus allowing for greater control over shipments, minimizing risks and acting as a final check point in order to avid fines and penalties. Also, an FTZ is the only place where an importer can commingle foreign (bonded) and domestic goods.

Export Savings
U.S. domestic goods may be shipped into a zone and considered exported for the purpose of duty drawback and excise-tax rebates.

Export Example: If Company XYZ Exports
62,869 cases of beer per year through the FTZ:
The Federal Excise Tax on beer:  $9.00 per case
Annual FTZ Savings on beer on exports: $565,821