What is an FTZ warehouse?
A Foreign Trade Zone (FTZ) is an area of land within a country where trade laws are different than the rest of the world. FTZ warehouses allow companies to store their merchandise in one location and ship items out from that zone as if they were made there, which can eliminate supply chain delays. An FTZ warehouse can help you avoid costly tariffs, delays, and costs that come with importing products into the United States from Mexico, Canada, or overseas.
What are some benefits of using an FTZ?
FTZ warehouses allow manufacturers or other businesses to store their imported goods in a designated Customs territory where duties are not assessed until the goods enter the United States. This means that your company can save money on import taxes before goods enter America's borders!
Businesses may also be eligible as one who qualifies under certain programs such as the Generalized System Of Preferences (GSP) or the North American Free Trade Agreement (NAFTA). NAFTA provides assistance for economic development among United States member nations Mexico and Canada through mutually beneficial efforts including more open markets.
What is the difference between Foreign Trade Zone (FTZ) and a Customs Bonded Warehouse?
A Customs bonded warehouse and a FTZ warehouse are two different types of storage facilities. A bonded warehouse is a location where goods can be stored without any duties or taxes. Goods in the bonded warehouse must remain there until they are exported, re-exported, or withdrawn for home consumption.
A foreign trade zone has locations where goods can be stored without any customs duty or tax payments pending their export from the zone to another country with which an agreement has been signed by both countries. It is possible to import goods into FTZ warehouses for a limited amount of time and then export them from another country without paying a customs duty.
Would you like to learn more about FTZ Warehouses or a Customs Bonded Warehouse?
Please contact Gilbert International and we would be glad to provide a customized quote for your merchandise.