| FTZ Feature |
Typical Savings |
Your Savings |
| Duty
is deferred on goods imported into an FTZ. While merchandise is stored,
inspected, labeled, assembled or manufactured, no duty is
charged. Duty is charged when the products leave the FTZ
for U.S. Customs Territory. The result is improved cash
flow.
|
Amount of average dutiable
inventory: $20,000,000 Average duty rate: 10%
Duty deferred: $2,000,000
Interest rate: 10%
Annual Savings = $200,000
|
|
| No
duty is charged on re-exported merchandise. Goods may be imported duty-free
into an FTZ, processed and re-exported without paying
duty to U.S. Customs.
|
Re-exported: $10,000,000 Average duty rate: 6%
Annual Savings = $600,000
|
|
| Processing
in a FTZ can lower or eliminate tariffs. A company that imports components
into the zone and moves assembled parts into the U.S.
Customs territory can benefit from lower tariffs.
|
Annual amount that would have been
paid: $375,000 Duty
on assembled products: $225,000
Annual Savings = $150,000
|
|
| No
duty is charged on damaged or defective goods. While goods are in an FTZ, you can
return or destroy materials that you cannot use.
|
Total imported goods: $10,000,000 % defective: 15%
Value of defective goods:
$1,500,000
Average rate: 8%
Annual Savings = $120,000
|
|
| Many
companies have saved 10-25% in insurance. Many insurance companies offer
lower rates on inventories held in FTZ’s.
|
Average annual value of inventory:
$22,000,000 Fire
& Theft Insurance:
(.07 per $100)
Annual Savings = $15,400
|
|
| Summary
of Savings: Deferred
duty
Re-exported merchandise
Lower processing tariffs
Defective goods
Insurance
Total Annual
Savings*
|
$200,000 600,000
150,000
120,000
15,400
$1,085,400
|
|
