How can Foreign Trade Zones in the USA benefit your supply-chain?

How can Foreign-Trade Zones in the USA benefit your supply-chain?

All you’ve always wanted to know on a Foreign-Trade Zone in the USA!
Brian Riley by Brian Riley 31/01/2022
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What is a Foreign-Trade Zone (FTZ) in the USA?

A Foreign-Trade Zone (FTZ) is a secure, geographical area authorized by the federal government, where commercial merchandise, both domestic and foreign, is outside the commerce of the United States for customs purposes. The United States FTZ can be located anywhere in the United States and allows manufacturers and distributors to store merchandise indefinitely and manipulate the merchandise within their FTZ with the product not subject to duties until it transfers out of the FTZ.

Foreign-Trade Zone simplified process in the USA
Foreign-Trade Zone simplified process in the USA
 
 

What are the benefits of using a Foreign-Trade Zone (FTZ) in the USA?

  • Duty Deferral, Reduction, or Elimination: Pay duties only upon import into the U.S. commerce from an FTZ
  • Inverted Tariff Relief: Electing zone status allows for selection of lower duty rate on foreign inputs or finished product manufactured in the zones (relabeling, repackaging, resorting allowed).
  • Weekly Entry & MPF Savings: Reduced entry processing fees: one entry filed each week and one Merchandise Processing Fee (MPF)
  • Tax Reduction: Imported products held in a zone, as well as domestic products held in a zone for export, is exempt from state & local ad valorem taxes (inventory taxes) *Note primarily TX & AZ may have Pilot Agreement Limitations*
  • Duty Exemption of Re-Exports: Duty is eliminated in-bond exports out of FTZ. Duties are also eliminated for merchandise that is scrapped, wasted, destroyed, or consumed in a zone.
  • Increased Operational Efficiencies: Realized savings from a greater inventory control accuracy, improved supply chain, and more efficient operations
  • Drawback Elimination: With an FTZ, the need for drawback may be eliminated, reducing the cost to administer

 

Why partnering with a global logistics company can help?

Often large logistics companies can provide expertise, scalability, and cost-saving solutions to support your organization's international trade. They have accredited Zones Specialists (AZs) NAFTZ who can meet your unique requirements. You can also benefit from the services of licensed Customs Brokers, across multiple industries. They are supported by our in-house brokerage and Trade Services Team. What’s more, these experts can stay ahead of changes within our global network and monitor regulatory requirements.

 

Here is an example of Foreign-Trade Zone (FTZ) Services at GEODIS in the USA:

  • FTZ Management Services
  • Entry Services
  • Services Into Foreign-Trade Zone (FTZ)
  • Services Out of FTZ
  • Consulting Services
A further breakdown of our GEODIS Foreign-Trade Zone (FTZ) Services in the USA
A further breakdown of our GEODIS Foreign-Trade Zone (FTZ) Services in the USA
 

We uphold and are dedicated to our commitment to:

  • Quality and compliance
  • Transparency and Collaboration
  • Retention and Training
  • Continuous Improvement

Want To know more about FTZ in the USA?

Contact our Foreign-Trade Zone experts below

 

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Of course, GEODIS offers FTZ solutions in many other countries around the globe but can also propose value added support to optimize your duties and taxes, to control your international customs flows or to provide consultancy services in various Customs and Foreign trade areas.


This article was suggested and written with the major contribution of Teryn Christy.
Teryn is Marketing Analyst for GEODIS supporting our Freight Forwarding line of business in the Americas Region. Teryn is a seasoned marketer who writes content alongside our GEODIS subject matter experts to position GEODIS as an industry thought leader.


For more details, feel free to contact our customs experts for assisting you in your future International Customs Brokerage Challenges!

Ask you question to one of our customs expert

 

 

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Author
Brian
Riley
Senior Vice President CHB, Americas chez GEODIS Freight Forwarding
Brian Riley is Senior Vice President of GEODIS | Freight Forwarding USA, stationed in Philadelphia, Pennsylvania. He started his career in Customs Brokerage in 1984 at F.B. Vandergrift Co, Inc. In 1988, Brian became a Licensed Customs Broker. During his early management years, he became involved in the Philadelphia Customs Brokers Association and served as both Treasurer and President. During his career at Barthco International since 1986, he fulfilled various roles including Air Import Manager Philadelphia, Branch Manager Miami and Director of the Warehouse Product. In 2006, OHL acquired Barthco International, and Brian took responsibility for their Midwest District Operations.
In 2009, Brian became a VP in Global Account Management and held that position until becoming District Vice President of the Central District region in March 2012. In 2016, GEODIS acquired OHL International, and in September 2017, Brian took on the role of Managing Director, USA. In September 2019, Brian became the Senior Vice President of Customs Brokerage for the Americas region. He continues to hold this position today.

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