Foreign Trade Zone - FTZ
Foreign Trade Zones (FTZs) are secure areas within the United States that are legally considered outside of the US Customs territory for the purposes of customs duties and taxes. This means that imported goods can be stored, manipulated, and exhibited within an FTZ without being subject to customs duties or taxes until they are released into the US market. Here are some key benefits of utilizing FTZ services:
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Duty Deferral: When goods are imported into an FTZ, duties and taxes are deferred until the goods are removed from the zone and enter the US market. This can help to improve cash flow by delaying the payment of duties and taxes.
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Customs Compliance: FTZs are highly regulated by the US Customs and Border Protection (CBP) agency, which means that businesses utilizing FTZ services can benefit from increased compliance with customs regulations and reduced risk of penalties and fines.
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Operational Flexibility: Businesses can store, manipulate, and exhibit goods within an FTZ without being subject to customs duties or taxes, which provides greater flexibility in supply chain management and can help to reduce costs.
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Improved Inventory Management: FTZs offer advanced inventory management capabilities, including real-time inventory tracking and reporting, which can help businesses to optimize their inventory levels and reduce the risk of stockouts.
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Increased Efficiency: FTZs can help to streamline supply chain operations by reducing the time and cost associated with customs clearance and transportation.
By utilizing FTZ services, businesses can benefit from improved cash flow, increased customs compliance, operational flexibility, improved inventory management, and increased efficiency in supply chain operations. These benefits can be particularly valuable for businesses that import and export goods on a regular basis.