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Sales to the Military From a Foreign-Trade Zone

Benefit's of FTZ's

Government and Military Sales

Foreign merchandise may be entered into the United States duty free if the vendor has a qualifying government contract in place. Because no entry is filed with U.S. Customs and Border Protection (CBP) until the product leaves a Subzone or General-Purpose Zone, FTZ status affords these companies the opportunity to defer the importation of the merchandise until the qualifying government contract is in place. This benefit is particularly important to U.S.-based manufacturers who manufacture products for both commercial and government sales. Often, the companies must bring in foreign parts before they know which parts will be incorporated into products for sale to the government, and which parts will be incorporated into products sold in commercial markets.

The Foreign-Trade Zone Corporation’s clients include a large number of companies who have both military and commercial supply contracts in industries such as aerospace, automotive, shipbuilding, electronics, and high tech materials. We have obtained FTZ status for these companies through Subzone and General-Purpose Manufacturing Applications, minor boundary modifications, and FTZ expansions and reorganizations, activated their facilities with U.S. Customs and Border Protection, and implemented FTZ inventory control software.

The ability of U.S.-based military suppliers to remain competitive often depends on their integration of cost-reduction measures like FTZ procedures for both military and commercial operations. With its expertise in all aspects of the FTZ program, the FTZ Corporation is the best choice when a company is pursuing FTZ savings related to government and military sales.


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