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Foreign-Trade Zones
(FTZ) are areas throughout the country that
are established to help U.S. companies
compete in international trade by making the
administrative process of
importing/exporting faster, easier and
cheaper.
The FTZ program is a federal
program designed to help companies based in
the U.S. level the playing field in the
global economy.
Types of Foreign-Trade
Zones (FTZ):
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General
Purpose Zones:
These are facilities that can be
used by one or more firms and are
most commonly located in ports or
business/industrial parks.
There are three types of GPZ’s:
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Alternative Site Framework (ASF):
Companies located on parcels, zoned
business or industrial parks &
located in designated ASF county can
quickly & inexpensively be
designated with FTZ status.
- Magnet
GPZ:
These sites are designated ports and
business/industrial parks.
These sites include activities such
as warehousing and distribution.
No
FTZ board application is needed to
establish operations within Magnet
sites.
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Usage-Driven GPZ:
This is where a specific company
that is not located or be
accomodated in a FTZ to be
designated as a FTZ company.
The company must apply for this
status.
Warehousing and distribution are the
normal activities that take palce in
this type of site.
It
takes 30-45 days to process these
applications.
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Activity that is
permitted in FTZs include: assemble,
exhibit, clean, manipulate, manufacture,
mixe, processe, relabele, repackage,
repaire, salvage, sample, store, teste,
displaye and destroye products.
Production activity must be
specifically authorized by the FTZ Board.
Retail trade is prohibited in FTZs.
Any type
of product that is not prohibigted from
entry into the U.S. is allowed in FTZs.
FTZs allow U.S.
based companies to defer, reduce, or even
eliminate Custom duties on products admitted
to the zone, and get products through
customs using speical customs procedures.
All FTZ sites must
be located within 60 statute miles or 90
minutes driving time from the outer limits
of a U.S. Customs port of entry.
Sub Zones may be located outside of
the 60mile/90 minutes driving time
requirement.
You can find FTZs and Subzones here:
U.S. Foreign-Trade Zones |
