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Understanding FTZs: A Gateway to Global Trade Efficiency

Understanding FTZs: A Gateway to Global Trade Efficiency

A Foreign Trade Zone (FTZ) as defined by the International Trade Association (ITA) is a “designated site licensed by the Foreign-Trade Zones (FTZ) Board at which special customs procedures may be used.” In other words, an FTZ is a location where goods can be shipped, handled, manufactured, reconfigured, and re-exported without the involvement of customs agencies and the associated fees.  

The Strategic Advantages of Utilizing FTZs  

Unsure of how FTZ benefits could help your business? There are several key advantages to consider:  

  • Duty Exemption. No duties on goods or quota charges on re-exports, which is money in your pocket. 
  • Duty Deferral. Customs duties and federal excise tax can be deferred on imports inside an FTZ, which helps with cash flow. 
  • Logistical Benefits. Companies using FTZ procedures may have access to streamlined customs procedures that save time. And, we all know, time is money. 
  • Tax Benefits. Goods, both foreign and domestic, that are being held for export are exempt from state/local inventory taxes when housed in an FTZ. 

Another key benefit of using an FTZ is supply chain management. You can keep more product on-hand in the U.S. for easy shipping without having to pay duties upfront or worrying about something being “out of stock” because it is stuck in customs. Merchandise in a zone may be, among other actions, assembled, cleaned, manipulated, manufactured, processed, relabeled, 

repackaged, sampled, stored, tested, and displayed.” Therefore, organizations with FTZ designation can help companies bring in parts and then ship out finished products for less money than if the assembly took place outside of a Foreign Trade Zone (FTZ) 

Maximizing Global Trade Potential with FTZs  

As a one-stop partner for global trade logistics, Foreign Trade Zone (FTZ) providers have the know-how and relationships to drive growth for your business while meeting customs compliance. Using an FTZ will help you gain an edge in the market by reducing costs, enhancing supply chain efficiencies, and improving customer service, which contributes to your overall success.  

As the ITA explains, “by reducing costs, FTZs level the playing field and improve U.S. competitiveness. FTZs can help businesses reduce production, transaction, and logistics-related costs by lowering effective duty rates, allowing special entry procedures, and encouraging production closer to market.”  

FTZs also help boost local economies by providing jobs and encouraging investment in U.S.-based companies as opposed to foreign ones just to save money.  

Why Choose NEMA Inc Logistics for FTZ Management?  

If you are exploring the idea of FTZ warehousing, lean on our 35-plus years of experience in the space. We understand customs compliance and how to help you maximize import-export savings. We maintain the only 3PL FTZ in Gwinnett County, Georgia, a location that allows easy access to the ports of Savannah and Charleston and keeps us free from mainline traffic.  

Our expert FTZ team helps businesses like yours leverage the advantages of these special, international storage spaces. We guide you through the process, assisting with everything from consultation and planning to setup, activation, and ongoing management of your product in our FTZ warehousing facility. Store your products or raw materials in our facility duty-free until the items are released for use, offset costs (deferred duties), and ease your company’s supply chain issues.  

We truly care about your company’s success and people. We want to help you understand the intricacies of FTZ benefits so you can take advantage of the efficiencies and savings the designation offers.  

If you are ready to maximize your company’s global trade potential with Foreign Trade Zone (FTZ) access, contact NEMA Inc logistics today. Our dedicated FTZ team is standing by to answer your questions and help you get started on the path to growth. Contact us today. 

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