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The key benefits of a FTZ are:
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Duty Deferral: You’ll realize improved cash flow as Customs duties are only
paid when imported merchandise is entered into the U.S. Customs territory.
Goods may be held indefinitely in a FTZ without Customs duty payment.
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Duty Avoidance: There are no duties paid on merchandise exported from a FTZ,
transferred to another zone or destroyed. This eliminates the need to manage
costly and time-consuming Duty Drawback programs.
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Duty Inversion: The user may elect to pay the duty rate applicable to either
the component materials or the finished goods produced from raw materials,
depending on which is lower.
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Inventory Tax Incentives: Companies that hold goods in a FTZ are allowed
exemption from inventory taxes. Also, certain tangible personal property is
generally exempt from state and local ad valorem taxes.
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Non-Dutiable Labor, Overhead and Profit: There are no duties applicable on
labor, overhead or profit to operations performed within a FTZ.
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Weekly Customs Entry: Customs allows for a weekly entry processing which
will benefit importers in that they pay Merchandise Processing Fees, capped
at $485 on a weekly basis versus a per shipment basis.
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Enhanced Security/Compliance: By using an FTZ, the “internal controls”
requirements of section 404 of the Sarbanes-Oxley Act are met and
participants in the C-TPAT program are eligible for additional benefits
provided by Customs.
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Strategic Location: Buffalo, NY is strategically located to major markets in
Canada and the USA. Product will reach most cities within a 500-mile radius
overnight at minimal freight costs
As companies take advantage of the benefits and cost efficiencies of a FTZ
to improve their global supply chain, they improve their market
competitiveness and help their businesses to grow.
© 2007 Speed Global Services
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