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Evans Distribution operates General Purpose Foreign Trade Zone #70. A Foreign Trade Zone, or FTZ for short, can be advantageous for many companies involved in the import and export of goods. What is a Foreign Trade Zone? An FTZ is a secured area within the United States, in or near a U.S. Customs port of entry, where foreign and domestic merchandise is considered to be legally outside of U.S. Customs territory. Certain types of merchandise can be imported into a 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. What are the benefits of operating in a Foreign Trade Zone?
What functions can be done in a Foreign Trade Zone? A variety of functions can be conducted in a foreign trade zone, including assembling, testing, re-work, cleaning, re-labeling, re-packing, co-packing with other foreign or domestic product, or destroying. For more information on Foreign Trade Zones visit the NAFTZ website. |