Foreign Trade Zone (FTZ) Benefits

Cash flow – inventory can be held in the zone duty-free until shipped to the customer.
Exports – no custom duties are paid on merchandise exported from a FTZ.
Defects/damage/waste – Customs duties are not paid on merchandise subject to these losses.
Inverted customs duty savings – Unique to a FTZ, it is the importer’s option to pay the duty rate applicable to either the parts or the finished unit, depending on which is lower.
International returns – No custom duties are paid upon return of exported merchandise.
U.S. Quota – Most quote-restricted goods can be held in an FTZ and shipped when the quote opens.
Spare parts – Spare parts may be held in the FTZ without customs duty payment.
Temporary removal procedure – Merchandise may be removed from an FTZ into customs territory in-bond for certain activities, and returned to the FTZ without customs duty payment.
Quality control – Only merchandise that meets specifications is imported and duty paid.
Country-of-origin – Depending on the processes, goods may be eligible for Made in USA labeling.
Security – Many firms find the required customs services supervisions and security to be quite beneficial.
Relabeling or remarking – Goods may be altered to meet federal or local requirements and submitted to customs for proper classification.