Foreign Trade Zone Services

Import new savings when you bring goods into a FedEx Trade Networks® Foreign Trade Zone (FTZ).

Importing products and materials means paying duties, tariffs, and the other costs associated with bringing goods into the U.S. market. Importing also generates complex logistics and inventory challanges, with products and components arriving in multiple shipments.

Importing into an FTZ can help reduce those costs and inefficiencies significantly. Let a specialist help you determine if FTZ services can help you cut import costs.

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Save on Duties

Duty exemptions. Duty eliminations. Tariff relief. Tax reductions. There are numerous ways importing into an FTZ can deliver real savings to the bottom line. For importers of some manufactured goods made from high-value components, such as electronics, the savings can be even greater. Take a closer look at some of the ways our FTZ services can help you cut import costs.

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Add Logistics Efficiencies

Receive it. Check it. Assemble it. Even re-export it. All before paying duties. Huge operational benefits come with the opportunity to process imports in a warehouse you control—before they incur U.S. duties. The possibilities for process improvements are virtually endless when you add the ability to identify and classify imported products in advance—and in a company facility.

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  • Duty Elimination
  • Inverted Tariffs
  • Re-Exports
  • Cost Reductions
  • Our FTZ services can help customers defer, reduce, and avoid a variety of charges, including duties on waste, scrap, and yield loss.

    Manufacturers operating in an FTZ don't pay duties on imports until its goods leave the zone and are entered for consumption. That means you only pay duties on the raw materials that make it into the final product, and you don't pay duties on by-products, such as waste and loss.

  • Use inverted tariffs to avoid duties altogether.

    When tariffs on component items or raw materials have a higher duty rate than the finished product, U.S. manufacturers operate at a cost disadvantage to an importer. In an FTZ, the U.S. manufacturer has the option to pay whichever duty is lower. If the tariff on the manufactured good is zero, you can achieve significant reductions in the costs associated with importing raw materials and components.

  • Avoid duties on re-exports.

    While merchandise within an FTZ is considered outside the customs territory of the U.S., this applies to formal entry procedures only. Foreign merchandise in an FTZ is within the territory and jurisdiction of the U.S. and is considered imported. A company importing components or raw material into the FTZ doesn't pay customs duty until it enters U.S. commerce. If the good is exported from the FTZ, no customs duty is due.

  • You may even save on taxes and insurance.

    Some states provide an inventory tax exemption on goods that are housed in an FTZ pending export. Ensuring that inventory to be exported doesn't enter the U.S. market may provide substantial inventory tax savings.

    Some companies can reduce insurance costs. Because they can provide greater security for inventory, many have reported lower insurance premiums.

  • Customs-Trade Partnership Against Terrorism (C-TPAT) Certification

    Simplify your application preparation.

    If your company relies on multinational sourcing, C-TPAT Certification can secure your supply chain, create a safer work environment, speed up customs processing and reduce the number of inspections. The greatest challenge is preparing a successful application. You can spend your time figuring out the necessary process changes and generating required documentation, or you could let us do the work for you.

    We can help you:

    - Conduct on-site diagnostic evaluations
    - Write procedure manuals and customize training
    - Assist with the application for membership to other countries' security programs

  • Streamline Logistics
  • Indefinite Storage
  • Cross Docking
  • Fewer Filings
  • Our FTZ services can also deliver improved compliance, inventory tracking, and quality control.

    Imported products and components often arrive in multiple shipments and must be received and classified at a U.S. Customs–controlled location. Companies operating in an FTZ, however, can process shipments in facilities they control. This means better tracking of inventory.

  • Hold goods until the timing is right.

    Companies operating in an FTZ can hold their goods indefinitely. That means you can hold products in your FTZ facility to help control inventory levels or until a desired port opens up. If there are quotas on the good, holding it at the FTZ can provide a mechanism for timing its entry into U.S. commerce and avoiding quota restrictions.

  • Eliminate duties on zone-to-zone transfers.

    You can leverage an FTZ location to manage transshipping operations and save money on manufacturing and processing fees. A network of U.S. FTZ locations and international shipping centers can be used to minimize customs duties. By taking advantage of crossdocking and transferring goods from one FTZ to another, many companies are adding significant cost-efficiency.

  • Cut your customs entry filings to one per week.

    When you operate in an FTZ, you may choose to file one Customs entry per week, instead of filing an entry every time a shipment enters the country. For many importers, this reduction in paperwork and processing bandwidth is substantial. To those savings you can add additional savings on Merchandise Processing Fees (MPF). Since MPF are paid on an entry basis, reducing entries to once weekly can reduce MPF costs significantly.

  • Customs-Trade Partnership Against Terrorism (C-TPAT) Certification

    Simplify your application preparation.

    If your company relies on multinational sourcing, C-TPAT Certification can secure your supply chain, create a safer work environment, speed up customs processing and reduce the number of inspections. The greatest challenge is preparing a successful application. You can spend your time figuring out the necessary process changes and generating required documentation, or you could let us do the work for you.

    We can help you:

    - Conduct on-site diagnostic evaluations
    - Write procedure manuals and customize training
    - Assist with the application for membership to other countries' security programs

Email us at ftz@ftn.fedex.com to learn more about how we can help you save and streamline your global business.