Foreign Trade Zone

How Can Businesses Take Advantage of Foreign Trade Zones

FTZs offer businesses a competitive edge in the global marketplace by providing a secure and beneficial economic environment. Within these specially designated areas, companies can import, store, and process goods with deferred or eliminated customs duties, creating substantial savings that can be reinvested into business growth and expansion.

Benefits of the Foreign Trade Zone

Here are some of the key benefits:

• Duty Exemption on Re-exports: Merchandise that is imported and then re-exported from the FTZ is not subject to Customs duties.
• No Duties on Rejected or Consumed Merchandise: If imported goods are rejected, scrapped, or consumed within the FTZ, no Customs duties are levied.
• Zone-to-Zone Transfers: Goods can be transferred duty-free between FTZs, which can be a logistical and financial advantage.
• Duty Deferral: Duties are deferred on merchandise while it remains in the FTZ, aiding businesses with cash flow and reducing the cost of money, especially beneficial for distributors or businesses with long inventory cycles.
• Inverted Tariffs: When manufacturing within the FTZ, businesses can choose to pay the lower duty rate of either the imported components or the finished product, potentially reducing duty costs.
• Reduced Merchandise Processing Fees (MPF): Businesses pay only one MPF per week for all shipments from the FTZ, which can significantly lower the costs for importers who frequently ship goods.

In Madera County, the Foreign Trade Zone is strategically positioned to optimize these benefits, providing businesses with a gateway to international trade and a platform for economic growth. By taking advantage of the unique provisions offered by FTZs, companies in Madera County can position themselves at the forefront of international commerce.

For site selectors and businesses considering Madera County for their operations, the FTZ offers a competitive edge, providing financial benefits and operational flexibility that can contribute to the success and growth of your business.