General Warehousing - Public Foreign Trade Zone (FTZ)
The Foreign Trade Zone is a unique ability granted to some U.S. facilities that allows duties & taxes to be deferred until the goods leave the facility. Supervised by U.S. Customs, items can be imported into the zone, and then stored,kitted,assembled or otherwise modified. Then when the goods leave the trade zone, that’s when duties are charged. These zones were set up by the Federal Government to “even the playing field” and offset advantages that some overseas suppliers have in the customs process. A Foreign Trade Zone (FTZ) is a secure area under the supervision of the Bureau of Customs and Border Protection (CBP). FTZs are considered to be outside of the Customs territory of the United States for the purposes of payment of duty. The authority for establishing zones is granted by the Foreign Trade Zone Board (FTZ Board), under the Foreign- Trade Zones Act of 1934, (FTZ Act) as amended (19 U.S.C. 81a-81u), and the FTZ Board’s regulations (15 C.F.R. 400).
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