Foreign Trade Zone (FTZ)
For more information, please go to InZone.
The purpose of the Foreign Trade Zone is to facilitate trade and increase the global competitiveness of U.S.-based companies.
- Imports may be admitted and held in a foreign-trade zone without paying U.S. Customs duties.
- FTZ users can pay the duty rate on component material or merchandise produced from component material, whichever is lower.
- Customs duties are not paid on merchandise exported from a zone.
- Duties are reduced or eliminated on materials subject to defect, damage, obsolescence, waste, or scrap.
- Merchandise may be exported and returned to an FTZ without duty payment.
- Spare parts may be stored, returned, or destroyed without duty payment.
- Delays in Customs clearances and duty drawback are reduced or eliminated.
- Duties are not owed on labor, overhead, or profit attributed to FTZ production operations.
- Quality control inspections can identify sub-standard goods to be destroyed or returned without duty payment.
- No duty is owed on in-bond, zone-to-zone transfer of FTZ merchandise.
