What is a Foreign Trade Zone (FTZ)
FTZ warehouses allow manufacturers or other businesses to store their imported goods in a designated Customs territory where duties are not assessed until the goods enter the United States. This means that your company can save money on import taxes before goods enter America’s borders!
There are many benefits of an FTZ, including but not limited to the following.
- Trade benefits for businesses. Any business with products admitted into the FTZ will find itself at a competitive edge over those who aren’t.
- Tax benefits. Businesses will only have to pay taxes on the merchandise if the merchandise is transferred into a territory
under the governance of the US Customs and Border Control. In addition, there will be some cases where the taxes that the business will have to pay on the merchandise is significantly reduced.
- Merchandise Processing Fee (MPF) Reduction. MPF is only paid on goods entering the U.S. Customs territory. Zone users are able to file a single entry for all goods shipped from a zone in a consecutive seven-day period instead of one entry file for each shipment (excluding merchandise subject to live entry).