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FTZ's allow firms the operating
flexibility and cost savings that are vitally important to
improving their market position. FTZ's, authorized by the U.S.
Congress in 1934, are areas within the geographic boundaries of
the United States, which are considered to be outside U.S.
custom's territory. Importers may bring foreign and domestic
merchandise into FTZ's without making formal customs entry or
paying Customs duties or excise taxes. Goods in a zone may be
stored, tested, sampled, relabeled, repackaged, displayed,
repaired, manipulated, mixed, cleaned, assembled, manufactured,
salvaged, destroyed and processed. Customs entry and customs
duties and excise taxes are paid only when the merchandise is
shipped from the FTZ into the U.S. market. If merchandise is
exported, no duties or taxes are paid.
The principle benefit of FTZ's
is the cash flow savings achieved by deferring the payment of
Customs duties and excise taxes. FTZ's may also be used to adjust
the tariff classification of the imported merchandise to a
different classification, one with a lower duty rate after being
shipped to an FTZ specific zone, for manufacturing or assembly
such as an auto plant. FTZ's allow firms with U.S. plants to
enter finished goods into the U.S. Customs territory at the same
rate as offshore manufacturers of the same goods. Our FTZ status
has been used successfully by many of our customers to develop
efficient and effective importing and exporting operations. We
are prepared to help our customers take full advantage of this
opportunity.
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