Customer Support

General Questions

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FTZ Services Questions

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To find a quick answer to one of the Frequently Asked Questions listed below, click on that question.

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Top Questions

• What is a Foreign Trade Zone (FTZ)?
• Specifically, what are the benefits of an FTZ?
• Can FedEx Trade Networks help me determine if my company can save money with an FTZ?

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General Questions

• What is a Foreign Trade Zone (FTZ)?

• Why does Customs allow FTZs?

• Specifically, what are the benefits of an FTZ?

• Can FedEx Trade Networks help me determine if my company can save money with an FTZ?

• How long does it take to get an FTZ approved?

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General Questions

What is a Foreign Trade Zone (FTZ)?

Foreign Trade Zones are federally designated areas physically located within the United States in which qualified goods may be stored or handled and be considered to be outside the authority of Customs & Border Protection (CBP).

Companies can save time and money by using an FTZ to streamline their import/export process, because goods and component parts are exempt from Customs clearance and duties until they leave the FTZ.

Importers and exporters can perform a wide range of commercial activities on goods in an FTZ, including storing, distributing, assembling, processing, manufacturing, testing, repackaging, repairing, displaying, destroying, inspecting, and labeling.

Why does Customs allow FTZs?

Foreign Trade Zones were established to enable US companies to compete better globally while maintaining jobs in the US.

Specifically, what are the benefits of an FTZ?

An FTZ can offer the following benefits:

• Duty Deferral Duties are not due until products leave the FTZ and enter US commerce, contributing to cash flow.
• Duty Reduction Component parts and materials admitted into an FTZ and manufactured into a finished good may have a lower duty rate than the imported item, or possibly no duty rate at all.This is called inverted tariff advantage.
• Duty Elimination Goods admitted to an FTZ and then exported are not subject to Customs duties.Also, goods destroyed in an FTZ are not subject to Customs duties.
• Inventory Tax Advantages Many states (18 currently) have tax exemptions for inventory in an FTZ.
• Direct Delivery Companies operating within an FTZ may obtain permission from the CBP to move goods from the entry port to their door without a Customs Exam.

Weekly Entry FTZ users may request weekly entry, which allows shipping 24/7 without delay or restriction. These companies file an estimated weekly entry before the week begins. This practice can significantly reduce brokerage and merchandise processing fees.

Can FedEx Trade Networks help me determine if my company can save money with an FTZ?

Definitely. We can help you through the entire process, with these steps…

Step 1. We will evaluate your current import process and operations.
Step 2. We will determine whether an FTZ will benefit your business.
Step 3. If it is clear that an FTZ makes sense for you, we will help you apply for it.
Step 4. We will assist you with filing your registration in the Federal Register.

How long does it take to get an FTZ approved?

Generally it takes 12 to 18 months. Benefits begin when the FTZ Board approves your application and you have requested activation from the CBP. We help you every step of the way.

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