Foreign Trade Zone (FTZ) operations can be successful cost reduction tools for companies importing or exporting in the United States. WTDC provides Public Foreign Trade Zone Warehousing and Foreign Trade Zone Consulting.
Merchandise for Domestic Consumption
In a FTZ, merchandise can be sorted, destroyed, cleaned, graded, mixed with foreign or domestic goods, labeled, assembled, manufactured, exhibited, sold and repacked. In other words, goods are "fungible." In a bonded warehouse, only cleaning, repackaging and sorting may take place and only under Customs supervision.
Duty Drawback to a FTZ
When products are delivered to a Foreign Trade Zone for export, Duty Drawback can be filed with U.S. Customs to recover duties and taxes paid.
Appraisal and Classification
In a FTZ, the value of the merchandise may be determined either at the time of admission into a Zone or when goods leave a Zone. It is at the user’s discretion, a useful when Closing Out goods or when Manipulating a Product.
Unlike a Bonded Warehouse, where goods must be destroyed or exported 5 years from date of importation, merchandise in a FTZ has no time restrictions.
Merchandise Processing Fee (MPF)
In a FTZ, importers can pay the MPF (≈.34% of value, max $485) by way of weekly summary entry on all import transactions during the week, as opposed to paying per entry filed. This is an advantage to companies filing multiple entries per week/month, as a max MPF of $485 is payable per week/month.
Harbor Maintenance Fee (HMF)
In a FTZ, the HMF (.125% value of goods) is payable 30 days after a quarterly filing, whereas in a typical shipment, the HMF is due per entry with no deferability. The deferral of HMF payments is a useful cash flow management tool.
(12/13/12)FTZ Open for Business! WTDC is now Foreign Trade Zone 281, Site 4. This week WTDC received its FIRMS code from U.S. Customs enabling it to operate the first Usage Driven site approved under PortMiami's FTZ281.
(Miami Herald, June 19, 2012 Port seeks more free-trade zones, by Douglas Hanks)
PortMiami announced a plan expected to gain approval this summer that would simplify the process for Miami-Dade companies to establish Foreign Trade Zones. Read more
In this informative video by Supply Chain Brain, Gary M. Goldfarb, WTDC Executive Vice President, explains Foreign Trade Zones and the positive impact they have on their surrounding communities.
(Miami Herald, A boost to South Florida's Economy, August 7,2012)
'In a move that enhances Miami-Dade County’s status as a center for international trade and commerce, the U.S. Department of Commerce this week provided a grant of authority for PortMiami Foreign Trade Zone No. 281, a new mega-Foreign Trade Zone (FTZ) that stretches north from Southwest Eighth Street to the Broward County line. The new zone will be among the nation’s first to operate under new, streamlined processes'. Read more from the Miami Herald