Questions What is a Foreign Trade Zones? Benefits & Basics of FTZ

  1. Why do companies use Foreign Trade Zones?
  2. What are inverted tariffs?
  3. Can import taxes be deferred if I will be re-exporting goods?
  4. If I manufacture in the FTZ will I have to pay duty on waste, scrap or yield loss?
  5. Are there cost benefits to using a FTZ?

Possible Solutions

  1. There are many benefits the Foreign-Trade Zones program can offer manufacturers and processors located in the United States, the main reasons companies use FTZ are:
  • Duty exemption on re-exports
  • Relief from inverted tariffs
  • Duty reductions due to waste, scrap and yield loss
  • Weekly entry savings
  • Duty deferral