A Foreign Trade Zone (FTZ) is an area approved by the U.S. Department of Commerce and Customs & Border Protection to be considered outside of U.S. Customs Territory. As an FTZ, companies can import product directly into their facility deferring customs entry procedures or import duties. The main benefits of activating your facility as an FTZ are:
The FTZ program is a complex program, and we are navigating a complex trade environment. The below information provides a general overview, each situation needs to be individually investigated. FTZs remain the most flexible tool to help companies manage tariff risk for their U.S. operations, FTZs are more flexible to the operator than a bonded warehouse. If you activate your facility as an FTZ, your facility is considered outside of U.S. customs territory. This allows you to defer the customs entry process and thereby defer tariff payments. There may be opportunities to reduce or eliminate tariffs altogether if the product never enters U.S. customs territory. The main benefits are summarized below:
2024 Indicators Show Continued Growth in FTZ Employment In 2024 FTZ #176 included nine activated operators: In 2024 we welcomed two new FTZ operators: Rivian Automotive LLC and Capitol Warehousing Corporation, which offers third-party FTZ warehouse management services to customers expanding the range of FTZ services available in our region. Economic indicators showed mixed year […]
Tariffs are again grabbing headlines and sending reverberating uncertainty across the c-suites of global companies. Will he or won’t he, and if he does how long can my cash flow absorb the impact of my inventory carrying costs suddenly increasing 10 – 25%? These are some of the questions keeping CEOs and CFOs up at […]
In addition to the baseline benefits of operating as an FTZ, some FTZ operators apply for and are granted a special authorization known as “Production Authority.” Production authority is granted by the National FTZ Board and allows companies to pay the tariff of their finished goods as they are appraised and classified when they enter […]
2023 Indicators Show Continued Growth in Employment, Value of Shipments and Exports In 2023 FTZ #176 included eight activated operators: Economic indicators across all FTZ sites show continued growth across a 5-year period (2018 – 2023): Operators report these zone benefits (edited to remove company identifying information and for clarity): In 2022 (2023 data is […]
As many original equipment manufacturers (OEMs) use foreign trade zones (FTZs) to reduce costs, you can gain an advantage over competitors, especially overseas competitors, by activating your facility as an FTZ.
New 3PL FTZ services at Capitol Warehousing will enable companies of all sizes to access FTZ benefits; new economic development service to the region. Capitol Warehousing announced its opening of a new 3PL Foreign Trade Zone warehouse in Belvidere, IL. With Capitol Warehousing now offering FTZ services to third parties, companies of all sizes and […]
Activating a facility as an FTZ will help companies hold onto their cash as they increase inventory volumes.
The benefits of Foreign Trade Zones (FTZ) are many, from increasing cash flow to improving supply-chain timelines and inventory control. Here’s how you can get started in activating within FTZ #176.
