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The Strange and Exotic World of Apparel Logistics Foreign Trade Zones

Foreign Trade ZoneStrange customs. Unfamiliar languages. New scents. Smiling, friendly people encouraging you to step inside and talk business.

Ahhh — the strange and exotic experience of life outside of America... somewhere in the middle of Texas, Nebraska, New Mexico or upstate New York. Okay fine: Foreign Trade Zones aren’t quite the same thing as a market in Marrakesh. But they can lower operating costs, improve your speed-to-market capabilities, and boost your bottom line. When it comes to apparel logistics, however, without detailed understanding of FTZ ins, outs, twists, and turns, you could end up as lost as a tourist in the bowels of a Bangkok bazaar.

In other words, FTZ rules and regulations aren’t always straightforward, and the opportunities to make an FTZ an advantageous part of your apparel supply chain are not always obvious.

Let our fashion logistics and supply chain services be your native guide.

For example, here is how your company can benefit from a properly-navigated FTZ:

  • Faster speed-to-market
  • Lower taxes
  • Lower inventory costs
  • Eliminated duties waste, scrap, and yield loss duties
  • Duty exemptions for re-exports
  • Weekly Entry savings
  • Flexibility from duty deferrals
  • Options, control, and profits

But here’s the sort of oft-shifting trade law and lingo you’ll need to deal with to reap such FTZ benefits:

“ … the procedure followed in processing applications submitted under §§400.24-400.26. In addition, it sets forth the time schedules which will normally be applied in processing applications. The schedules will provide guidance to applicants with respect to the time frames for each of the procedural steps involved in the Board's review. Under these schedules, applications involving manufacturing or processing activity would be processed within 1 year, and those not involving such activity, within 10 months. While the schedules set forth a standard time frame, the Board may determine that it requires additional time based on special circumstances, such as when the public comment period must be reopened pursuant to paragraphs (d)(2)(v)(B) and (d)(3)(vi)(B) of this section. b) Prefiling review. Applications subject to §400.29 shall be accompanied with a check in accordance with that section, and will be dated upon receipt at the headquarters of the Board. The Executive Secretary will determine whether the application satisfies the requirements of §§400.22-400.24, 400.25, 400.26, 400.32, and other applicable provisions of this part.”

Get the idea? If you’re unfamiliar with FTZs or have had difficult experiences with them in the past, at The Apparel Logistics Group our third party logistics services can help. We have a consistent and lengthy track record of guiding apparel companies through the application process, activation period, and continuing FTZ operations.

Contact us to learn more — we can provide a presentation and a savings analysis specific to your company.

Posted: 10/27/2011 10:13:09 AM by Global Administrator | with 0 comments


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