Merchandise may be admitted into an FTZ without going through formal Customs entry procedures or paying import duties. Customs duties and excise taxes are due only at the time of transfer from the FTZ for U.S. consumption. If the merchandise never enters the U.S. commerce, then no duties or taxes are paid on those items.
Specific company operations and location determine the best method of utilizing a Foreign-Trade Zone (FTZ). Basically, there are three ways to use or operate an FTZ – each offering companies financial benefits and increased convenience and flexibility related to imported goods.
1. Bring imported goods into an FTZ General-Purpose Warehouse
A public warehouse with FTZ designation is referred to as "general-purpose" because it is available to multiple users and accommodates a variety of needs.
While in the zone, merchandise can be:
|
Assembled
Tested |
Repackaged Destroyed
|
Cleaned
Stored Indefinitely |
Sampled
Relabeled |
Mixed
Manipulated |
Salvaged
Processed |
The warehouse operator typically handles all FTZ related forms and reporting. The importer therefore realizes immediate FTZ benefits without the obligations associated with operating a FTZ.
