What is a Foreign Trade Zone?
A “Foreign Trade Zone” or “Free Trade Zone” is a special economic zone, which means it has benefits for those who use it, namely not having to pay import taxes or duties until it is released for domestic consumption.
It is also an area where foreign or domestic goods may be landed, stored, handled, manufactured, or reconfigured and re-exported without said duties. (Harbor fees still apply.)
An FTZ is considered international commerce but will still fall under the jurisdiction of local, state, and/or federal governments and agencies.
There are many benefits to placing your material into a Foreign Trade Zone and are used by many that plan to reexported in the future. There are entities that are in place that will keep your material protected and organized. The convenience of being able to hold off paying duties until you are ready to receive your cargo may have many positive effects for those who choose to utilize an FTZ.
There are many benefits to including an FTZ as part of your import program. Should your plans be to export this equipment to another country, or just delay the duties until ready to be released for domestic shipment. This allows for positive effects no the bottom-line cost for your project.