For more help on duty rates, consult the Harmonized Tariff Schedule
here
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Basic Information
Sample
Annual Value of Imports in Dollars
Annual value of imports in U.S. dollars that your company pays for goods that originate from a source outside the United States.
$125,000,000
Average Inventory Turnovers per year
Average inventory turnovers is the amount of times inventory is sold and replaced in a year.
6
x per year
Average duty rate for parts
Average duty rates for parts is the average rate that U.S. customs taxes the matierials that your company imports.
10%
%
Average duty rate for finished product
Average duty rate for finished products is the average rate at which U.S. customs would tax your final product, if it were imported rather than produced in the U.S.
2.5%
%
Interest rate or cost of money
Interest rate or cost of money is the rate your company pays for borrowing money, or keeping money tied up that could otherwise be earning interest.
10%
%
Waste and Scrapped
Percentage of materials that are used or discarded and do not appear in your company's final product.
10%
%
Re-Export
Percentage of your total import value that does not ever enter the U.S. market and is instead shipped to and sold in a foreign market excluding Mexico and Canada.
2%
%
International Returns
Percentage of import value that is returned due to defect or surplus.
1%
%
Zone-to-Zone Transfer
Percentage of imports that are send from your company to another manufacturing or distrubution facility that is in a foreign trade zone including Mexico and Canada.
0%
%
Entries per Year
Number of times per year merchandise is entered into the U.S.
1500
Average Entry Cost
FTZ's allow companies to group entries into weekly units instead of paying per entry. The annual entry fees for an FTZ member could be as low as $25,220 or $485(the maximum entry fee allowable) times 52 weeks.
100
Estimated Savings
Sample
Duty Deferral
Duty deferral is interest that could be earned on money paid for duty fees. Because an FTZ will allow the duty to be deferred from the time that the item enters the compay inventory until the time that it enters the market, that money can remain within the company during this time, and can be used to earn interest or to prevent the company from having to borrow money.
$208,333.00
Waste and Scrap Savings
Waste and scrap savings result from avoiding ever paying duty on materials that are used up or discarded before ever entering the US market - this includes chemicals or other materials.
$1,250,000
Re-Export Savings
Re-Export savings occur when your company imports parts, assembles or adds value in the U.S. and then exports the final product overseas. Because the product never technically enters the U.S., duty is not ever paid on these imports.
$250,000
International Return Savings
International return savings result from never paying duty rates on items that are defective or surplus and are returned to the foreign manufacturer.
$125,000
Zone Transfer Savings
Zone Transfer savings allow manufacturer to send products to another FTZ without paying duty for entry into the U.S.
$0
Weekly Entry Savings
Average cost per entry
$124,780.00
Duty Reduction
Duty reduction occurs when a company is paying a higher duty rate for a part that it imports than it would if it simply imported the finished product.
$8,156,250
Gross Savings
$10,114,363