FTZ Benefits


What Are the Benefits of Operating in a Foreign-Trade Zone?
FTZs were designed to increase the use of American labor and to stimulate capital investment by allowing activity to occur within the U.S. prior to application of U.S. customs laws. The benefits of using an FTZ include duty deferral, lower duty rates, duty elimination on defective or damaged materials and waste or scrap materials, management of quota restrictions, and the possibility of tax and licensing savings.

How Do These Benefits Apply To My Company?
As one of the primary benefits of using an FTZ, duty deferral allows companies to defer paying duty on imported merchandise until the merchandise leaves the FTZ and enters the commerce of the United States. For merchandise admitted into and re-exported from an FTZ, no duty is assessed.

An FTZ user that assembles or manufacturers in a zone can apply to the Foreign-Trade Zones Board for authorization to elect to pay duties on imported components either at the duty rate applicable to the components or at the duty rate applicable to the finished product. If the duty rate on the finished product is lower than the components, an FTZ provides lower overall duties.

Quota restrictions can generally be managed by admitting goods into a FTZ. Over-quota merchandise can usually be held in a zone until the next quota period begins, and may often be used as a component part of a product that is not over quota. Some marking restrictions can also be avoided by bringing goods into an FTZ.

Export savings can be realized by moving domestic goods into an FTZ due to the fact that they are treated as already being exported upon entering a zone. Consequently, exporters can accelerate drawbacks by moving goods to be exported into a zone. Additionally, defective merchandise is treated as exported and subject to drawback.

Savings are also available through the exemption of state or local taxes on merchandise admitted in an FTZ due to federal preemption. For example: State and local ad valorem tax is not applicable to foreign origin or foreign destination goods in an FTZ.

How Can I Benefit from the Calhoun-Victoria FTZ?
FTZ #155 exists within the boundaries of Calhoun County and Victoria County on the Texas Coast, approximately 100 miles southwest of Houston and 90 miles east of San Antonio.  The FTZ provides manufacturer-shippers with duty deferred, in-transit storage and assembly of products for import and no duty assessment on products re-exported. Sites within the district have been set aside for this purpose and general light manufacturing. Available real estate and warehouse space, make FTZ No 155 an excellent choice for manufacturers exporting to other countries or serving U.S. markets.


How Does the Public Benefit From FTZ No. 155?