Foreign Trade Zones can be highly beneficial to companies and parties involved in international trade. Here are essential FTZ terms you may find useful in order to help you understand and maximize the benefits of operating in an FTZ.
This refers to the physical arrival of approved items in a zone. The use of the word ‘admission’ is preferred over ‘entry’ to prevent confusion with Customs entry processes.
Some merchandise can be delivered to a zone without prior approval from Customs. These are generally low-risk goods deemed appropriate for quick and efficient delivery by the Port Director.
When imported materials that enter an FTZ are used in the manufacture of items which are later exported, the government compensates the company by repaying its import duties. These are called drawback taxes. It is one type of a tariff-reduction tool used by the Customs Department to encourage businesses to use FTZs.
Foreign Trade Zones Board
This is the government body that reviews and approves applications for the establishment and operation of FTZs according to the terms and provisos of the Foreign Trade Zones Act of 1934.
A grantee is an entity that has been given the right and privilege to create and maintain an FTZ by the Foreign Trade Zones Board. Grantee corporations must be public corporations and may include municipalities, public agencies or parties organized for the expressed purpose of setting up a zone project.
In addition to fostering international commerce, Foreign Trade Zones can be highly beneficial to a number of companies and public interest groups involved in the import-export business. At Islip FTZ 52, we can assist your company with commercial property leases, finding Long Island warehouse space, duty-free trade and several other domestic or international trade issues. We have more than three decades of experience in the field; let us help you achieve the success you desire for your company.