WHAT IS A FOREIGN TRADE ZONE?
Upon arrival to the United States, goods transported to an FTZ are accorded special benefits, allowing companies that use the zone to defer, reduce, or eliminate customs duties on imported goods admitted into the zone for storage, manufacture, or processing. These benefits translate into considerable cost savings for businesses that utilize the zone—cost savings that can increase cash flow and grow business, giving local importers a competitive edge in the local market place.
FINANCIAL BENEFITS OF A FOREIGN TRADE ZONE:
- DUTY EXEMPTION ON RE-EXPORTS:
Duty charges on goods exported from an FTZ (or transferred from one FTZ to another FTZ and then exported) are waived.
- DUTY DEFERRAL:
No duty is charged on goods stored in an FTZ. Customs duties are paid only when goods are transferred out of the FTZ and into territory subject to U.S. Customs regulations.
- RELIEF FROM INVERTED TARIFFS:
If foreign components are brought to an FTZ and manufactured into a finished product that has a lower duty rate than that of the components, the lower duty rate applies.
- AD VALOREM TAX EXEMPTION:
Goods imported into the U.S. and stored in an FTZ before re-export and goods produced in the U.S. and stored in an FTZ prior to export are exempt from state and local ad valorem taxes.
- WEEKLY ENTRY SAVINGS:
FTZ users are permitted to file one customs entry per week, as opposed to one per shipment, significantly reducing the processing costs associated with multiple entries.
- SUPPORT SERVICES:
FTZs are typically equipped to provide warehousing services and logistical support.
FOREIGN TRADE ZONE NO. 102
Saint Louis has recently expanded Foreign-Trade Zone (FTZ) No. 102, fostering regional growth and reinvestment by mitigating the cost of importing goods into the United States.
To further enhance trade and lower operating costs for local companies, St. Louis County Economic Council and St. Louis County Port Authority have received approval to designate all of St. Louis County and the City of St. Louis as Foreign-Trade Zone eligible under the Alternate Site Framework option recently made available by the U.S. Department of Commerce. This allows a company to receive the FTZ designation at its place of business, even if it is not within the established boundary of FTZ No. 102.
For more information, please contact the Saint Louis County Economic Development at (314) 615-7663.