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The Foreign Trade Zone Program was created by the United States government in the 1930‘s to facilitate international trade, increase the global competitiveness of U.S.-based companies and stimulate domestic economic development. The program continues to thrive and change to better meet the needs of American companies in the global economy.

 

What we do


Cost Benefit Analyses

We prepare a comprehensive analysis identifying FTZ benefits that apply to your operations.  These benefits may include inverted tariff relief, duty deferral, duty avoidance, MPF reduction, and state and local tax avoidance.  We take into account the impact of NAFTA and the WTO Uruguay Round staged tariff reductions, as well as implementation and operating costs, to determine the net benefit of utilizing a FTZ.


Applications for FTZ status

We organize and manage the entire application process, from drafting the application to guiding it through review and approval by the sponsoring general purpose FTZ and the Foreign Trade Zones Board.  


FTZ Inventory Systems

We work with you to determine systems requirements, develop in-house systems design specifications or assist in vendor software selection and final system integration.  We also help clients to develop and document the operating procedures needed to effectively manage FTZ operations and compliance.


FTZ Activation

We prepare U.S. Customs’ required procedures manual and obtain all necessary waivers and authorizations from the U.S. Customs Service to allow FTZ operations to begin.  We work directly with Customs officials and client representatives to insure that all parties understand how the company will meet its compliance obligations.


Contract Management

We process all FTZ paperwork and transactions, and then prepare required reports and documents on your behalf for filing with Customs.  Our objective is to maintain a strong compliance environment, while eliminating administrative distractions that take attention away from your core business.


Compliance Reviews

We review your FTZ operations to assess your compliance with current rules and regulations.  We identify opportunities to improve performance by recommending the latest business process and information technology solutions.




How Can You Benefit from the FTZ?

Defer Duties

Customs duties are paid only when and if goods are transferred into U.S. Customs territory. The savings allow you to keep critical funds accessible for operating needs. There is no limit on the length of time items can remain in the zone.

Reduce Duties

With zone status, you may be allowed to pay lower duties on goods and products assembled or manufactured within the zone. If the duty rate on a finished product is lower than the rate on the components, you pay the lower rate.  

 

Eliminate Duties

Customs duties are eliminated on merchandise exported from the zone. No duties are paid on labor, overhead, or profit attributed to production operations in the zone. Duty is not paid on in-bond, zone-to-zone transfers of goods and products. And generally, duties are also eliminated for material scrapped, destroyed or consumed in the zone.

 

Improve Profits

A key benefit of the FTZ program is improving cash-flow by deferring, reducing and eliminating customs duties. There are many other advantages to doing business in the zone. Almost any business that imports and/or exports goods and products can benefit.   



EGI Global Trade Solutions delivers decades of combined real world experience in international trade and customs compliance.