BROWARD COLLEGE-SEAPORT TRAINING PROJECT
What you should know about Foreign Trade Zone Foreign Trade Zones…
A Foreign Trade Zone is part of an attractive federal program to defer, reduce, or even eliminate costly U.S. Customs duties on products imported into the country. Companies currently importing goods and paying U.S. Customs duties are invited to participate and take advantage of this program. A Foreign Trade Zone (FTZ) is an area that, for U.S. Customs purposes, is considered to be in international commerce. Any foreign or domestic material can be moved into an FTZ without being subject to U.S. Customs duties. A FTZ is operated as a public venture sponsored by a local municipality or authority. Advantages of foreign trade zones include:
Import duties are not paid until the goods leave the FTZ. Re-exported goods are never entered into U.S. commerce and are not subject to U.S. Customs duty. No duty is paid on scrap, waste, or damaged goods.
The company has the use of the duty dollars for the time the goods are in the FTZ. The final duty rate paid is that of the component part or of the finished article, whichever is lower. Products transferred from Zone to Zone are duty free.
Most merchandise subject to quotas may be held in a FTZ until quotas open. U.S. Customs review of security procedures and federal laws governing unauthorized removal of Zone merchandise deter theft. Due to increased security, discounted cargo insurance rates (up to 40% less) have been negotiated. Broward County has two foreign trade zones:
FTZ No. 241 City of Fort Lauderdale Executive Airport (FXE)
Fort Lauderdale Executive Airport’s Foreign Trade Zone Program offers businesses several location options. Businesses can relocate in to the Executive Airport’s 200 acre Industrial Airpark, choose another city – owned site, or locate at one of the privately-owned sites.
Subzone status can also be granted through for sites located outside the pre-approved areas. A Subzone is operated by the individual firm through a separate application to the Foreign Trade Zones Board and an agreement with the City of Fort Lauderdale. FTZ No. 25 Port Everglades FTZ No. 25 is the first of its kind and the largest in Florida. Companies that operate within it
take advantage of benefits such as:
- Improved cash flow
- Avoidance of duty
- Lower tariff rates
- Reduced insurance costs
- Upgraded quality control
- Elimination of custom clearance delays
From auto parts to cosmetics, businesses of all sizes can implement more effective economical solutions for cargo storage, merchandise manipulation and manufacturing needs. Port Everglades also operates several FTZ facilities in other Broward County locations. While considered “outside of U.S. Customs territory,” duties on products admitted through the zone can still be deferred, reduced or eliminated.
The value of goods moving through Port Everglades’ FTZ No. 25 exceeded $685 million in Fiscal Year 2011 (October 1, 2010 through September 30, 2011) and an additional $6.75 billion worth of merchandise moved through the Special-Purpose Subzones of FTZ No. 25. Positively impacting profitability through saving incentives has made FTZ No. 25 a proven outlet for strong businesses to thrive and small businesses to grow stronger.
It also offers the opportunity to:
Defer, reduce or even eliminate Customs duties on products admitted into the zone.
Save on taxes and improve bottom line results.
Expand in the United States and abroad.
Boost competitiveness domestically and internationally.
Port Everglades also operates several FTZ facilities in other Broward County locations.
For more details about FTZ No. 25, call 954-523-3404, or e-mail PortEverglades@broward.org