As world trade barriers are removed, companies will find inherent benefits and advantages to operating in a U.S. designated foreign trade zone. A foreign trade zone (FTZ) is an area designated by the United States government as being outside the country’s commerce for Customs purposes.

There are three main benefits for companies locating at a foreign trade zone.

1) It allows manufacturers or distributors to pay no duty on imported items or raw materials until such goods enter the commerce of the U.S.

2) FTZ users may also receive permission from Customs to move imported items directly from the ports to the FTZ, avoiding delays at congested ports.

3) The Trade and Development Act of 2000 allows FTZ users to submit weekly reports and pay one broker and processing fee per week, rather than submitting a report and paying a fee for each shipment. This can result in significant cost savings.

The advantages are especially important for the following industries:

• Appliances
• Automotive
• Chemicals
• Consumer Goods
• Electronics
• Fragrances
• Pharmaceuticals