A vendor located in one Foreign-Trade Zone may sell goods to a company in another Zone or Subzone anywhere in the U.S. and transfer those goods to the purchasing company’s FTZ with no duty paid on the goods. The FTZ Corporation has assisted companies in a wide variety of industries, from automobiles to pharmaceuticals to food products, to implement Zone-to-Zone transfer procedures with U.S. Customs and Border Protection. By helping to extend FTZ benefits through a company’s U.S. supply chain, the FTZ Corporation can help the company to lower its overall cost structure and optimize just-in-time supply chain elements.
The integration of Zone-to-Zone transfers at certain points in their supply chains helps more than the final manufacturer of a product. Manufacturers whose end products have a lower duty rate than the raw materials or components can receive raw materials and components duty unpaid and elect the duty rate of their finished goods. This can result in a reduction – or elimination – of the raw material and component duty rates, which makes those U.S. suppliers more attractive relative to their foreign competitors. In certain cases, companies will utilize free trade zone facilities overseas in conjunction with their U.S. FTZ operations to minimize their duty costs.
The Foreign-Trade Zone Corporation has implemented innovative Zone-to-Zone transfer procedures that have significantly reduced the administrative burden for its clients and created less work for CBP. This involves minor boundary requests or applications to the U.S. Foreign-Trade Zones Board for General-Purpose Zone or Subzone status, activation and implementation of Zone-to-Zone procedures with U.S. Customs and Border Protection, and development of compliant internal inventory control system and audit trail procedures.