Foreign Trade Zone (FTZ) Consulting Services
Companies import and export a wide range of materials and finished goods daily. Beyond the logistical and supply chain considerations for such movements, companies may incur additional costs for customs duties and fees at time of import. The use of US Foreign Trade Zones (FTZs) can help to mitigate those costs.
With an FTZ, goods may be admitted for storage, manipulation or manufacturing without triggering the payment of customs duty when the goods arrive in the US. Only when the goods are subsequently removed from the FTZ to enter US Commerce may the goods be subject to duties. Goods ultimately removed from the FTZ for re-export avoid duty payment altogether.
Based on the recent Annual Report of the Foreign-Trade Zones Board to the US Congress, there was $767b in inventory admitted into FTZs, and $111b in merchandise exported to foreign countries. In addition, the number of people employed in FTZs is sizable. The report noted that over 460,000 people are employed at 3,300 companies utilizing the FTZ program.
As demonstrated by these figures and the anticipated increased growth of international trade, the FTZs program is a strategic tool used by US manufacturers and distributors to reduce customs and supply chain costs, promote US competitiveness and generate additional US jobs.
We have a team of Foreign Trade Zone consultants with a deep understanding of the rules governing FTZs. We can help your business:
- Evaluate the potential benefit of an FTZ based on your unique supply chain structure
- Apply for and establish an FTZ by working with local jurisdictions, the FTZ Board and US Customs
- Conduct trade operations in a compliant and efficient manner by providing centralized, managed services that help you redeploy key resources, shifting their focus from repetitive, transactional activities to what matters most — creating value for the organization
- Leverage our EY Trade Connect modular trade technology platform including the FTZ inventory system module
- Navigate the regulatory and compliance requirements associated with operating an FTZ
Interested in the changes we have made here,
contact us to find out more.