Foreign-Trade Zone 181

Upcoming Events

Newsroom

Subscribe

P.O. Box 5190
Kent, OH 44242
Phone: 330-672-4080
or 800-793-0912
International: 001-330-672-4080
Email: mmorgan@neotec.org

 

FTZ Fact vs. Fiction


 

FICTION:   It takes over a year to have my property designated as a Foreign-Trade Zone.

FACT:   Through a new streamlined application process, your property can be designated in approximately 30 days.

FICTION:   The program is too complex.

FACT:   As an importer, you still have to comply with trade regulations and file documents according to U.S. Customs procedures. The same can be accomplished through your import broker. The Foreign-Trade Zone program adds discipline and streamlines the process while providing savings.


FICTION:   My company imports a product that is duty-free, therefore there are no benefits of operating in an FTZ.

FACT:   Two benefits of the FTZ program are independent of duty savings. The Weekly Entry program allows you to consolidate Customs entries, resulting in savings of Merchandise Processing Fees and Customs brokers fees. You can also request Direct Delivery privileges and bypass U.S. Customs at the port, resulting in significant time savings, particularly for shipments routed through busy coastal ports.

FICTION:   Foreign-Trade Zones can cause too much U.S. Customs oversight.

FACT:  As an importer, you are still responsible for trade compliance whether you are in an FTZ or not. U.S. Customs recognizes FTZ operators as a best practice in trade compliance due to the set-up, training and discipline of the program. U.S. Customs makes it known that they are there to help you succeed and remain globally competitive by using the unique tools the FTZ program provides.
 

FICTION:   I will have to spend money to review the FTZ program to see how much my company will save, if any.

FACT:   NEOTEC, grantee of FTZ 181 and zone administrator of FTZ 40, will conduct a no-cost, confidential benefit analysis using information you provide. There is no cost or obligation up to that point.

FICTION:    It is expensive to set up and operate under FTZ procedures.

FACT:   We use a 6-month or sooner ROI benchmark on one-time setup costs. If that return cannot be projected, you will be advised not to move forward with the program at that time. Ongoing costs are held to a fraction of your savings.

FICTION:   I have to move my entire operation into an existing FTZ-designated business park to participate.

FACT: We can have your property designated as a Foreign-Trade Zone site through application to the FTZ Board in Washington, D.C. The timeframe for approval is approximately 30 days.