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

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}

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}

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.

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