BENEFITS FOR BUSINESSES AND THEIR COMMUNITIES
What are the major potential benefits for my business?
Duty Deferral: Duties are not paid on imported merchandise held in the Foreign-Trade Zone until it is admitted into United States commerce for consumption. For some businesses, this could provide substantial cash flow savings.
Duty Reduction: If a company does manufacturing or processing with foreign components, it has the option to pay the duty on the finished product or the imported components (in their condition as imported), whichever is lower. The company is not required to pay the duties until the product is entered in United States commerce for consumption.
Duty Elimination: If imported merchandise is either destroyed in the Zone or re-exported back into the global market, a company is not required to pay any duties on that merchandise because it never entered United States commerce. This is an incredible benefit for companies using American labor to manufacture products with foreign components that are exported around the world.
Direct Delivery: With prior approval from Customs, a business can have their imports delivered directly to their facility without waiting for Customs clearance. This can provide a much more efficient supply chain.
Weekly Entry: In an FTZ, a business is only required to make one estimated weekly entry for customs, rather than making an entry for every arriving shipment. Therefore, a company only pays a custom broker’s fee and merchandise processing fee once a week, resulting in significant savings for a company that brings in a large number of shipments per week.
Duty Drawback Elimination: An FTZ eliminates the need for duty drawback because duties are never paid at all on merchandise that is re-exported. This increases cash-flow and reduces tedius duty drawback paperwork
What are the potential benefits to the local communities?
· The Foreign-Trade Zone program only benefits businesses with an established presence in the United States.
· Companies employ more people from local communities surrounding the Zone because of increased activity due to the Zone
· Companies invest in facilities and infrastructure which adds to property tax rolls and encourages companies to stay local.
· Provides financial benefits to existing or new businesses without any local funding
· Increased employment will require the need for additional support services