DOING BUSINESS

Foreign Trade Zone #303

What is a Foreign Trade Zone?

Sites within the US that are considered to be outside the U.S. Customs territory where foreign and domestic merchandise is considered to be in international commerce
Companies that operate in foreign trade zones can defer, reduce, or eliminate Customs Duties on foreign products
Merchandise can enter A FTZ duty free and w/o a formal Customs entry

Merchandise in a FTZ may be assembled, exhibited, cleaned, manipulated, mixed, processed, relabeled, repackaged, repaired, salvaged, sampled, stored, tested, displayed and destroyed
Manufacturing and processing activity must be specifically approved by the FTZ Board
Retail trade is prohibited in activated zone space

Duty Elimination:

All items for re-exports (never enter US Commerce)
Components are brought into the FTZ under a bond
Duty rates on components may vary according to the commodity
Assembly of component onto a Vessel which changes the Harmonized Code of the component and the component now becomes part of the Vessel
Upon departure from FTZ, the Vessel is exported from the US and so no duty is levied on the component

Duty Deferral:

Duty Reduction / Inverted Tariff:

Components are brought into the FTZ under bond
Duty rates on components may vary according to the commodity
Assembly combines the component into the product which changes the Harmonized Code of the component
The new Duty Rate is the one for the product (Vessels pay 1.5% duty)

In March 2013, Broward inaugurated FTZ #241 organized under a new process called ASF (Alternate Site Framework) allowing the FTZ status to be brought to any company in the permitted area that can comply with the regulations…so now the FTZ comes to you!
CBP will only approve a FTZ Site when the site has the ability to communicate electronically with Customs 24/7 and issue paperless documentation
Most sites can be up and operating in 90-120 days from the time they start the process

Reduce/eliminate importation costs
You can move a Vessel for up to 4 months without paying import duties
Show a foreign flagged Vessel to US Citizens
Allows you to perform repairs and add value to merchandise while under bond in a FTZ without paying Sales and Excise Taxes
Allow you to handle products not permitted to import in the United States due to EPA and/or other agency restrictions
Save all duties payable at importation if the Vessel is registered foreign
Job creation/retention
Capital investment opportunities
To defer payment of duties until goods enter into the commerce of the U.S.