DETERMINING IF A FOREIGN-TRADE ZONE
IS RIGHT FOR YOUR BUSINESS
What are some indicators to consider a Foreign-Trade Zone?
There are a number of factors and indicators that can determine whether or not a business should be considering how a Foreign-Trade Zone could be beneficial. Some of the benefits can provide an immediate cash flow savings, while others can streamline your supply chain and reduce paperwork.
Some of the indicators to look for are:
· Large volumes of customs entries in the US
· Large customs duty payments
· History of shipment delays
· Company already has secure facilities and compliant operations
· Planning an expansion of facility or increase in manufacturing
· Currently utilizing a Bonded Warehouse or the Duty Drawback Program
What is a Feasibility Study?
A feasibility study is the process of evaluating the savings provided by a Foreign-Trade Zone against the costs incurred through operating a Zone. A simple calculation can be done using our Basic FTZ Analysis Calculator, or some companies hire consultants to conduct a comprehensive feasibility study.
A list of FTZ Consultants as well as more detailed information on Feasibility Studies can be found in our
marketing links in the right hand column