P.O. Box 81553 Cleveland, OH 44181 USA
Sample showing potential FTZ savings(*)
Weekly Entry
Merchandise Processing Fees (MPF) are charged by US Customs & Border Protection to process all import entries. The rate is .3464% of the FOB value of the goods imported, with a minimum of $26 and a maximum of $508.70 per entry.
The FTZ program allows the importer to consolidate all weekly arrivals into one entry so that they only pay the $508.70 MPF once for all entries processed during a given week. This translates into savings similar to those shown in the example.
(*) Please note: The example illustrates sample savings only. Actual savings will depend on your specific data.
Duty Elimination
The FTZ program allows the importer to defer the payment of Import duties when goods are admitted to the FTZ until the items are removed for consumption in the US.
The FTZ program allows import duties to be eliminated in most cases if the goods are exported to another country(*). Similar treatment is afforded to goods that cannot be sold and are scrapped with no residual value(*). The latter translates into savings similar to those shown in the example.
(*) Please note: The example illustrates sample savings only. Actual savings will depend on your specific data. Special rules apply for shipments to NAFTA countries or items subject to Section 232 or Section 301. Please contact us for details.
Duty Reduction
Import duties for foreign-made items admitted to a FTZ and ultimately consumed in the US do not need to be paid until the goods leave the FTZ. Foreign components that are used to manufacture finished products within the FTZ can have the applicable duty reduced or eliminated(**) by comparing the duty of the imported item to the duty that would apply to the finished product if it was imported in that condition.
The FTZ program allows the importer to pay the lower of the two duties on the imported components once the finished good is removed from the FTZ for consumption in the US(**). In the event that the applicable duty for the finished product was "zero", the import duty payable on the foreign components would effectively be eliminated(**).
(*) Please note: The example illustrates sample savings only. Actual savings will depend on your specific data.
(**) Special rules apply to items subject to Section 232 and Section 301. Please contact us for details.