What Can a Foreign Trade Zone Do For You?

 Getting your merchandise through customs can be a huge hassle. Foreign Trade Zones (FTZ) take a lot of the stress away by eliminating certain taxes and speeding the whole process up. In the end not only will you be saving time, but money as well. Here are some of the benefits that a FTZ can offer.

What exactly is a Foreign Trade Zone?

A FT Z is an area that is under the supervision of the Bureau of Customs and Border Protection. The purpose of a FTZ is to make foreign commerce a simpler process by lowering the costs of doing business. FTZ also help keep U.S. based operations globally competitive. Understanding the ins and outs of how FTZ’s work can be difficult. That is why The Apparel Logistics Group has done all of the homework for you!

Saving you time

An FTZ can save you up to 1-3 days in time. This is crucial to most manufacturers who are working on a deadline. FTZs cut down on the need to hold products for customs clearance which can reduce a major hold up in the supply chain. At The Apparel Logistics Group we use this to our advantage in order to save our clients the most time and money possible.

Cutting down on Duties

A major expense for manufacturers comes at the border where they have to start paying duties on a large list of items. The list of items that won’t be subject to customs duties at an FTZ include:

·         Scrap/Waste/Damaged goods

·         Consumed Merchandise

·         Value added to merchandise

·         Production Equipment

·         Spare Parts

Tax Benefits

There are also several tax benefits in using an FTZ. Some of these include

·         Exemption from inventory tax

·         Tax Exemption on re-exports

·         Tax deferrals

Trade Smarter

Don’t let customs get your company tied up in a knot of complicated expenses. The Apparel Logistics Group can streamline your trading while saving you time and money with FTZ’s. Give us a call today to find out why we are one of the top 3PL’s around!

Posted: 8/25/2014 12:00:00 PM by Global Administrator | with 0 comments
Filed under: Foreign, FTZ, Trade, 3PL

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