A Powerful Tool Hiding in Plain Sight
Foreign Trade Zones are designated areas where imported goods can be stored, assembled, manufactured, or processed without formal customs entry or duty payment until the goods enter U.S. commerce. Over 190 general-purpose zones exist, yet many importers have never evaluated whether FTZ operations could benefit their business.
How FTZs Work
Duty deferral improves cash flow. The inverted tariff benefit allows paying at the lower finished product rate. Duty elimination applies to exports and waste generated during manufacturing.
Who Benefits Most
Manufacturers with inverted tariff situations, distributors holding imported inventory for extended periods, businesses that re-export imported goods, and companies with high-duty imports or Section 301/232 tariffs.
The FTZ Application Process
Using an existing zone is simpler. Subzone applications require a more extensive review. Both require maintaining accurate inventory records and passing periodic CBP audits.
Ready to Take Action?
Peacock Tariff Consulting helps businesses evaluate FTZ feasibility, navigate the application process, and maximize financial benefits. Contact us today.
Related Articles
- Tariff Mitigation Strategies for Manufacturers: Protecting Margins
- Steel and Aluminum Tariff Consulting: Navigating Section 232 Duties
- Bonded Warehouse Consulting: Defer Duties and Improve Cash Flow
- Tariff Engineering Services: How Smart Product Design Can Save You Millions
- Duty Drawback Consulting Services: Recovering Up to 99% of Duties on Exported Goods