USA Free Trade Zones (FTZs)

Free Trade Zones in the United States

A class of special economic zone, Free Trade Zones in USA are also commonly referred to as “Foreign Trade Zones”. Businesses receive multiple benefits in trade-free zones in USA.

Within its premises, businesses get to enjoy customs duty exemption for their goods. Generally organized around major seaports, it also holds many trade advantages.

According to the Free trade zone directory of the United States Department of Commerce, there are around 298 USA free trade zones throughout the 50 states. Within the Free Trade Zones in USA, there are two specific types – the General Purpose Zones and Subzones. Tetra Consultants recommends clients who are engaging in international commerce to adopt the available Free Trade Zones in USA

Advantages of Free Trade Zones in USA

• By taking advantage of the US Foreign Trade Zones program, companies can benefit from a sizeable amount of cost savings. These free zones allow companies to bring goods in without duties or fees.
• This includes exemption from inventory tax and local Ad Valorem taxes and tax credit. In many cases, companies in the Free Trade Zones do not have to pay any tariff for manufacturing goods. This eliminates any costs associated with importing resources and reducing the cost of production. Importing components or raw materials into the Foreign Trade Zone also does not require the payment of any Customs duty.
• The USA Foreign Trade Zone program allows companies to hold their goods indefinitely in the zone. Therefore, any import that is subjected to quota can be admitted when a new quota year begins. As such, companies utilizing the free zones can gain access to potentially discounted inputs.
• With the passing of the Trade and Development Act, zone users only have to file for one Customs entry per week. This amendment creates additional cost savings for zone users.
• The Free Trade Zones in the United States have strict security measures in place. As zone users, companies can benefit from enhanced security protection and do not have to worry about crimes such as theft.

General Purpose Zones

• The General-Purpose Zones comprise industrial parks and port complexes. These areas have facilities that are available for the use of the general public. By leasing space within a General-Purpose Zone, costs can be cut to the minimum. Thereby, reducing each company’s liability. These zones are also meant for importing or exporting finished products, parts, or components.
• If your company is looking for a short-term space in the Foreign Trade Zones, Tetra Consultants will search the General-Purpose Zones available and share with you the one most suited for your business.
• Located within 60 miles or 90 driving minutes away from the outer limits of the customs port of entry, these General-Purpose Zones offer greater flexibility in the customs phase. Thereby, boosting companies’ international competitiveness.
• Some examples of third-party warehouses include Swafford Warehousing, Logistics Plus, and Scarbrough International. Adopted commonly by businesses in heavy industrial, manufacturing, energy, machinery industries, some notable clients include Google, Siemens, Canadian Solar, and more. These third-party operations offer similar services in inventory control and bookkeeping, supply chain solutions, and “Zone to Zone” shipments. Their secured facilities ensure that all of your goods are well-protected.
• Tetra Consultants will assist our clients by recommending the most suitable warehouse for their business needs.

Subzones

• Subzones are made available by General Purpose Zones. Typically made up of single-purpose sites, they are classified primarily as Subzones since their operations are not feasibly capable of being moved to or accommodated in a General-Purpose Zone. All financial responsibilities for subzones will be dedicated to the firm solely.
• As subzones are normally private plant sites, Tetra Consultants would recommend large companies to opt for a subzone instead.
• Some companies that have set up their own subzone sites include Hitachi Automotive Systems Americas. Other operators include Tri-Link which is authorized in establishing subzones on private premises. Commonly, these operators set up subzones as they utilize a large space – this means that operating a subzone might be more cost-effective.

How to proceed with registering a company in Free Trade Zones in USA?

Contact us to find out more about how to be part of free trade zones in USA as well as how to register company in US states such as Delaware. Our team of experts will revert within the next 24 hours.

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