Foreign trade zone
Take one look at the population, economic, business and other growth indicators throughout Brown County and it’s readily understandable why the Green Bay area obtained foreign trade zone status. The area we call home provides direct access to world markets via land, sea and air. The Austin-Straubel International Airport designation as a general-purpose foreign trade zone includes more than 2,300 acres of airport property.
Foreign trade zone services
Foreign trade zones are designated areas, within the Untied States, where foreign and domestic merchandise is considered to be outside the territorial U.S. for customs purposes. Consequently, merchandise can be imported into one of these zones without going through federal customs entry procedures or paying import duties. The appropriate customs duties are payable only at the time of transfer from a zone for U.S. consumption.
Foreign trade zone benefits
- Cash flow – inventory can be held in the zone duty-free until shipped to the customer.
- Exports – no custom duties are paid on merchandise exported from a FTZ.
- Defects/damage/waste – Customs duties are not paid on merchandise subject to these losses.
- Inverted customs duty savings – Unique to a FTZ, it is the importer’s option to pay the duty rate applicable to either the parts or the finished unit, depending on which is lower.
- International returns – No custom duties are paid upon return of exported merchandise.
- U.S. Quota – Most quote-restricted goods can be held in an FTZ and shipped when the quote opens.
- Spare parts – Spare parts may be held in the FTZ without customs duty payment.
- Temporary removal procedure – Merchandise may be removed from an FTZ into customs territory in-bond for certain activities, and returned to the FTZ without customs duty payment.
- Quality control – Only merchandise that meets specifications is imported and duty paid.
- Country-of-origin – Depending on the processes, goods may be eligible for Made in USA labeling.
- Security – Many firms find the required customs services supervisions and security to be quite beneficial.
- Relabeling or remarking – Goods may be altered to meet federal or local requirements and submitted to customs for proper classification.
For more information about the foreign trade zone or its benefits, contact 920.496.9010.