Reno AirLogistics Park is eligible for designation as a Foreign Trade Zone (FTZ), offering businesses significant logistical and tax benefits. This designation can help streamline operations, reduce customs duties, and improve overall supply chain efficiency.
A Foreign Trade Zone (FTZ) is a secure, access-restricted, Customs & Border Protection privileged area in or near a U.S. port of entry where merchandise both foreign and domestic may be admitted, stored, exhibited, manipulated, temporarily removed, manufactured, or destroyed duty-free. Duties, certain user fees and taxes are only assessed on products that are transferred out of the FTZ and into the United States for consumption purposes. Products that are transferred out of the FTZ and exported abroad are exempt from any duty, user fees or taxes.
Benefits within a FTZ
Duty Deferral
Duties are only paid when imported merchandise is entered into the U.S. Customs Territory.
Duty Elimination
There are no duties paid on merchandise that is exported from an FTZ, transferred to another zone, or destroyed. This eliminates the need to manage costly and time-consuming Duty Drawback programs.
Weekly Entry
Customs allow for a weekly entry processing, which benefits importers because the Merchandise Processing Fees are capped at $538.40 on a weekly basis, versus per shipment basis.
Manipulation
All manipulations are authorized and completed without physical Customs supervision. Goods are allowed to enter an FTZ and have the following manipulations: clean, repair, fix, improve in value, amend, exhibit, pick & pack, and many other functions.
Inverted Tariff
In FTZ manufacturing, the imported goods can have higher duty rates than the finished product entering the U.S. commerce. The FTZ Board may allow the manufacturer to apply the lower finished product duty rate to the foreign inputs.
Foreign Trade Zone Program Feasibility Questionnaire
Source: City of El Mirage, Arizona & City of Goodyear Arizona
Visit www.elmirageaz.gov for more information. To learn about incentives offered by the State of Arizona, visit www.azcommerce.com/incentives.
