Manufacturing and Distribution Newsletter November 2016
The Benefits of Manufacturing within a Foreign-Trade Zone
Foreign-Trade Zones (FTZ) are geographical areas where goods may be landed, handled, manufactured and re-exported without the intervention of the U.S. Customers and Border Protection (CBP). They can be very beneficial to United States manufacturers because, although merchandise imported into an FTZ is under the supervision of the CBP, it is not subject to CBP duty and excise tax until exported. FTZs were designed to encourage companies to keep manufacturing jobs in the United States by allowing them to compete with the benefits of manufacturing outside of the United States.