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Foreign Trade Zones and C-TPAT Certification Bring Businesses into the Safe Global Market

The international business climate grows more complex each year. Modern businesses are more global than ever before, and greater globalization means additional trade-related risks. Foreign Trade Zones (FTZs) and Customs-Trade Partnership Against Terrorism (C-TPAT) certifications are two tools with which The Apparel Logistics Group (TALG) can help you minimize the risks and costs of doing business internationally. TALG has years of experience in handling international business logistics and can show you how to use FTZs and C-TPAT certification to streamline your global supply chain.

Understanding C-TPAT Certification

TALG is C-TPAT certified, which can make doing business abroad much cheaper and more efficient. The C-TPAT program began in 2001 to protect the international trade industry from terrorism while also preserving the financial health of the United States and its neighbors. The program aims to enhance security against terrorists without harming trade in the process. Today, there are nearly 11,000 C-TPAT certified companies. Because TALG holds this certification, it entitles us to:

  • Reduced U.S. customs inspections. When goods are imported into the U.S., customs assigns a risk value to the shipment based on several factors. When a C-TPAT certified company imports goods, customs deducts points from that risk value. As a result, the goods get placed in a preferred category, thereby expediting the shipping process.
  • Front-of-the-line privileges. Cargo containers from C-TPAT certified companies can be placed ahead of non-C-TPAT containers no matter how long they've been in line for examination.
  • FAST Lanes. Free and Secure Trade (FAST) Lanes are dedicated lanes for C-TPAT companies to expedite the clearance process across the borders between the U.S. and Canada and the U.S. and Mexico.

Why You Need Foreign Trade Zones

Known internationally as free-trade zones, FTZs are secure areas in or near U.S. Ports of Entry that are considered out of Customs and Border Protection's (CBP's) territory. That status allows companies who use them to defer, reduce, or eliminate customs duties, thereby improving cash flow and lowering inventory costs.

TALG has the expertise and experience necessary to help you leverage FTZs in your global supply chain. We can walk you through the application process, activation period, and continuing FTZ operations. Some of the benefits of using FTZs include:

  • Relief from inventory property taxes. You can receive an exemption from inventory taxes.
  • Deferred duties. Goods aren't categorized as imported until they leave the FTZ, which means that customs duties are deferred until the cargo officially enters the U.S.
  • Eliminated duties on waste, yield loss, and scrap. Rather than paying customs duty on material as it is imported, an importer using an FTZ only owes duties if the material leaves the zone.
  • Duty exemptions on re-exports. If you import apparel merchandise into an FTZ and then export it back out of the U.S., you will never have to pay customs duties.
  • File only one Customs Entry per week. You save time and money by only having to file entries weekly.

If you would like more information about our FTZ operations, complete this short form. Within one to three business days, we'll contact you with a presentation that includes a savings analysis tailored to your company.

Posted: 11/11/2015 2:16:05 PM by Global Administrator | with 0 comments


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