Foreign Trade Zones have the potential to save customers who import or export goods internationally a lot of money. But FTZs can be complicated business — which is why we have several experts on our team to help customers navigate their use of Foreign Trade Zones in the United States.
Chris Gladitz is one of the Foreign Trade Zone administrators on staff at Team Hardinger. He knows all the rules, regulations and laws surrounding FTZs. He sat down with us to answer some of our customer’s common questions about foreign trade zones.
Question: What exactly is an FTZ?
Chris: FTZ stands for Foreign Trade Zone. A foreign trade zone is a secured, designated location in the United States typically in or near a U.S. Customs port of entry. It’s a place where foreign and domestic merchandise is generally considered to be in international commerce and outside of U.S. Customs territory.
Q: Is there an FTZ near me?
There are hundreds of FTZs throughout the United States. Team Hardinger operates two active FTZ sites in the region where customers can warehouse imported goods.
Q: Why would a company use an FTZ?
Chris: Simply put, a company that uses an FTZ can benefit from duty deferral or duty elimination, and also reduce or eliminate duty drawback processes and expenses, brokerage fees and associate merchandise processing fees. All of those types of payments can add up quickly for a company, so the opportunity to reduce or even eliminate some of those costs can save a customer significant money.
If you’re exporting, an FTZ can also help you because foreign goods and domestic goods held for export in an FTZ are exempt from state/local inventory taxes.
Q: What can be warehoused in an FTZ?
Chris: Any merchandise that is not prohibited from entry into the U.S. may be admitted to a Foreign Trade Zone.
Q: What are some common types of industries that benefit from a FTZ?
Any industry type can benefit from using a FTZ. Some of the most common are:
•Motor Vehicle Assembly
Q: How can I know if Team Hardinger’s FTZ is right for my company?
Chris: If you are a company importing merchandise for warehousing and distribution it is worth exploring whether you can save money by taking advantage of our Foreign Trade Zone.
Or if you’re exporting, it also would be beneficial to talk to me to figure out exactly how utilizing our FTZ warehouses might benefit you.
Q: So how do I get started or find out more?
Chris: Call me anytime! I can talk you through the process and give you all the ways your company might benefit from using Team Hardinger’s Foreign Trade Zones. You can reach me directly at 814-453-6587 ext. 127.