Duty Deferral Via The Use of a Foreign Trade Zone -FTZ & Distribution Services in Michigan
A Foreign Trade Zone (FTZ) like TVI Logistics is a government designated facility that allows duties & taxes to be deferred until the goods leave the facility. Supervised by U.S. Customs, items can be imported into the zone, and then stored, kitted, assembled or otherwise modified. Then when the goods leave the trade zone, that’s when duties are charged. These zones were set up by the Federal Government to “even the playing field” and offset advantages that some overseas suppliers have in the customs process. A Foreign Trade Zone is a secure area under the supervision of the Bureau of Customs and Border Protection (CBP). FTZs are considered to be outside of the Customs territory of the United States for the purposes of payment of duty. Such facilities were created for the purpose of increasing global trade and function under the Foreign- Trade Zones Act of 1934, (FTZ Act) as amended (19 U.S.C. 81a-81u), and the FTZ Board’s regulations (15 C.F.R. 400).
On Sep. 20th, TVI Logistics had the pleasure of participating in FCAInnovate 2017. We were 1 of 12 companies in the automotive industry selected to present at this year’s session hosted by Fiat Chrysler Automobiles!
