FTZ and commercial real-estate

Foreign Trade Zones (FTZ’s) are secure areas under US Customs & Border Protection (CBP) oversight. FTZ’s were established by the US government under the FTZ Act of 1934 and they are the USA’s version of what are known internationally as Free Trade Zones. FTZ’s are located in the USA and in or adjacent to a CBP port of entry—like DFW Airport!

What is an FTZ?

The point of these “zones” is to provide a place to store commercial products without having to deal with formal customs entry procedures and payment of customs duties.

Duty Deferral
 When foreign goods are imported into a FTZ, no customs duty is owed until those goods leave the zone and technically enter the U.S. for commerce. Simply keeping the imported product as inventory within a FTZ enhances the user’s cash flow by postponing the time duty must be paid.

Elimination of Duties
 Customs duties are eliminated entirely on goods re-exported either in their original form or as components of finished products produced in the zone.

Inverted Tariff
 When goods are manufactured into other products within the FTZ, the importer may elect to pay the duty rate applicable to either the imported part or the finished product, whichever is lower.

Improve Delivery Speed & Cost
 Speed up and streamline the supply chain process by utilizing “direct delivery” and “weekly entry” procedures.

Direct Delivery 
 Ability to receive imported goods faster by bypassing normal customs procedures and moving them directly into a FTZ. Users can avoid customs clearance at ports of arrival which can often times eliminate delays from processing back-ups and can be especially valuable to business utilizing “just in time” inventory management system.

Weekly Entry
 Allows goods to be shipped 24 hours a day, seven days a week, with just one entry filed each week and pay just one Merchandise Processing Fee (MPF) per entry, capped at $485. The Weekly Entry process can result in savings of up to 85 percent on entry and processing fees. Entry and Merchandise Processing Fees (MPF) can be paid weekly, rather than daily, saving time and brokerage fees, as well.

State & Local Tax Savings
  A FTZ specifically prohibits state and local governments from assessing business personal property tax on inventory that has either been imported into a foreign trade zone and is being held in a foreign trade zone for export.

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