Special Services : Foreign Trade Zones Foreign Trade Zones (FTZ) were created more than sixty years ago to facilitate trade and increase the global competitiveness of U.S.-based companies. An FTZ is a facility that the government considers outside the Customs territory of the United States. Certain classes of goods may be moved to an FTZ from outside the United States without filing a consumption entry with Customs and paying duty. While in a Zone goods can be assembled, cleaned, destroyed, manipulated, manufactured (with special approval), mixed, processed, re-labeled, re-packed, salvaged, sampled, stored, or tested. Importers may enjoy substantial cash flow benefits by storing goods in an FTZ, deferring duty payments, until orders are received to ship the goods. Arranging weekly withdrawal of goods from an FTZ permits an importer to reduce Customs Merchandise Processing Fees (MPF). Imports may be admitted and held in a Foreign Trade Zone without paying U. S. Customs duties. FTZ users can pay the duty rate on component material or merchandise produced from component material, whichever is lower. Customs duties are never paid on merchandise exported from a Zone. Duties are reduced or eliminated on materials subject to defect, damage, obsolescence, waste or scrap. Merchandise may be exported and returned to an FTZ without duty payment. Spare parts may be stored, returned, or destroyed without duty payment. Duties are not owed on labor, overhead, or profit attributed to FTZ production operations. Quality control inspections can identify sub-standard goods to be destroyed or returned without duty payment. No duty is owed on in-bond, Zone-to-Zone transfer of FTZ merchandise. Krieger Worldwide can tailor an FTZ process to suit your specific needs. Put our experts to work for you.