In U.S. Foreign-Trade Zones, no duty payment is required on merchandise brought into a General-Purpose Foreign-Trade Zone or Subzone unless and until the goods are entered into the United States. These funds may be used as working capital to earn interest or be invested. This benefit is similar in concept to free trade zones in other countries. It can be especially important to companies with high volume imports or merchandise with high duty rates, such as textile products.
The FTZ Corporation helps its clients to obtain FTZ cash flow savings from duty deferral and reduce their Customs-related merchandise carrying costs. The process of obtaining Cash Flow savings involves obtaining FTZ status, activation with U.S. Customs and Border Protection, and implementation of an FTZ inventory control system.
The FTZ Corporation’s exceptional success rate for applications to the FTZ Board ensures that we get General-Purpose Zone establishment, expansion, and reorganization applications, minor boundary modifications, and Temporary Interim and Permanent FTZ manufacturing authority and Subzone applications approved quickly.
The FTZ Corporation’s unmatched level of operational expertise ensures that our clients maximize their FTZ cash flow savings and enjoy efficiency of FTZ procedures in all parts of their operations. In addition, our experience in implementing FTZ inventory control software with existing company systems gives our clients the knowledge that their data mapping accurately and compliantly tracks dutiable merchandise. The net result is increased cash flow savings and reduced risk of fines, penalties, and liquidated damages resulting from non-compliant operations.
Accurate calculation Cash flow savings and their integration into a company’s FTZ savings estimates can be a key point in determining whether a company should move forward with a Zone project.