Is an FTZ for you? – World Trade Magazine Article on FTZ Benefits

World Trade Magazine recently published an article highlighting the benefits of operating in a Foreign-Trade Zone.

Is an FTZ for you?

Most companies involved in international trade can benefit from using a foreign trade zone.

August 1, 2013

Foreign trade zones (FTZ) are one of the more powerful tools available to companies involved in world trade, but they are also one of the least understood and misunderstood resources.

Authorized in 1934 under the Foreign Trade Zones Act, the U.S. now has over 600 foreign trade zones and sub-zones. One of the primary benefits of an FTZ is that U.S. Customs and Border Protection (CBP) consider goods in the FTZ to be outside U.S. customs territory as long as they remain in the zone. The goods aren’t subject to duties until they leave the zone for U.S. consumption. Postponing duty payments until the goods are sold and shipped to a U.S. customer — and paying duties only on the goods that are being shipped out of the zone — might be benefit enough for many companies, but there is more to gain from using an FTZ.

Amie Ahanchian, managing director of KPMG LLP, groups the benefits into four broad categories: duty deferral, duty avoidance, duty inversion, and other savings and benefits…

The full article is available here.