Overview of Federal Program for FTZ: How Companies Save Money
Discover the benefits of Foreign-Trade Zones (FTZ), including duty deferral and reduction, in this comprehensive overview. Learn about FTZ structure, activities within zones, and the process to get started. Find out how companies can lower costs and maximize savings through this federal program.
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Presentation Transcript
FTZ 101: An Overview of this Federal Program Steve Schellenberg IMS Worldwide, Inc.
What is an FTZ? A Foreign-Trade Zone (or Free Trade Zone) is a Federal Program, started in 1934 and in use in all 50 states today. The FTZ allows Federal Taxes and Fees to be lowered, eliminated, or exempt from payment. Anyone any business who qualifies can get it.
What is a Zone Site? An Industrial Park An Industrial Development inside a Port or Airport A Company s Facility (Subzone)
Identify the Region ARPC Serves Calhoun, Franklin, Gadsden, Gulf, Jackson, Jefferson, Liberty, Leon and Wakulla Counties New Zone Service Area (CBP out of TLH) Franklin, Gadsden, Jefferson, Liberty, Leon, Taylor, Madison, and Wakulla
Who are the Players? Grantee = The local authority entrusted with the administration of the program in the local community Operator = A company that operates under Zone Status, within its own facilities for itself or for the account of others Users = Companies using the FTZ, either as an Operator or within an Operator s facility FTZ Board US Customs and Border Protection
U.S. FTZ Structure U.S. Dept of Commerce U.S. Customs Grantee Operator of General-Purpose Zone or Subzone User User User
What Activity Occurs within Zones? Distribution Storage Testing and Inspection Repackaging Assembly Repair Manufacturing
How Do Companies Save Money in an FTZ? Duty Deferral Duty Elimination Duty Reduction Customs Fees
What is the Process to Get an FTZ? Local Sponsorship of the Grantee Make an application to the FTZ Board Activation of the user/importer/tenant Normal processing time for all this = 12 months but now, under ASF, fully approved and Activated in 4-6 months! Much faster ways, cheaper ways, but on a case by case basis .
Economic Development Tool FTZ is a new site requirement FTZ pays for itself at 250-300% ROI in the first year of implementation---if a company qualifies. FTZ impacts supply chain velocity. FTZ attracts and stabilizes jobs in a community. EDCs across the country recognize the FTZ as a marketing and business attraction tool.
