A 760-acre parcel of land in Auburn, Maine is designated a General Purpose Foreign-Trade Zone, allowing qualifying companies to save money conducting international trade by either eliminating or deferring the payment of tariffs.
Currently, two warehouse operations in Auburn — Savage Safe Handling and NEPW Logistics — offer dedicated space reserved for General Purpose Foreign-Trade Zone use for clients of any size.
What is a Foreign-Trade Zone?
Created by the Federal Government in the 1930s, a Foreign-Trade Zone facilitates trade and increases the global competitiveness of U.S.-based companies.
Legally, a Foreign-Trade Zone (FTZ) is an area within the United States that the Government considers outside the country, or at least, outside of the U.S. Customs territory. Certain types of merchandise can be imported into a Zone without going through formal Customs entry procedures or paying import duties.
Some of the benefits of operating within an FTZ are obvious. At the very least an FTZ can help you defer paying duties. More often, the company pays lower costs, not only to U.S. Customs, but to its bank, insurance company, and other vendors.
For example, each imported item has a unique tariff rate. However, tariff rates on finished and/or value-added goods (i.e. assembled or manufactured products) are often lower than the rates on raw materials or components used in making the finished products. FTZ users often pay a lower rate when the finished product is sold domestically.
Activities Permitted in a Foreign-Trade Zone*
Merchandise entering a Zone may be:
|*The user must receive special approval from the FTZ Board for manufacturingTen Ways Your Company Can Benefit From Using a Foreign-Trade Zone
Some Companies That Use Foreign-Trade Zones:
For more information contact firstname.lastname@example.org
SOURCE: The National Association of Foreign Trade Zones