One of the FTZ benefits which is often overlooked is duty elimination on waste, scrap, and yield loss. Without a Zone, an importer pays the Customs duty owed as material is brought into the United States. In a Zone, only merchandise that leaves a General-Purpose Zone or Subzone and enters the U.S. commerce is dutiable. No duty is paid on irrecoverable yield loss or merchandise that is scrapped or destroyed in the Zone. There are also Zone advantages for recoverable scrap that can be sold or recycled.
Waste, scrap, and yield loss savings are available to many companies across industries, such as automobile assembly, pharmaceutical manufacturing, and electronics distribution, but the FTZ Corporation’s consultants are operational experts and specialize in identifying savings that many consultants may miss. They also know how to implement innovative, compliant procedures to capture those savings and work with CBP to obtain approval for procedures that it is not always familiar with.
The FTZ Corporation’s turnkey FTZ services ensure that we can identify potential waste, scrap, and yield loss savings early in the process, which permits integration of those procedures into the application, activation, software implementation, and training stages of a project. This is a unique benefit that may not be available under foreign free trade zone programs.