1 / 22

TOWN OF ISLIP FOREIGN TRADE ZONE AUTHORITY

TOWN OF ISLIP FOREIGN TRADE ZONE AUTHORITY. Administrators of Foreign Trade Zone No.52. WHAT IS A FTZ. The US Foreign Trade Zone Program was introduced by President Roosevelt in 1934 as part of the “New Deal” to promote and encourage international trade

vail
Download Presentation

TOWN OF ISLIP FOREIGN TRADE ZONE AUTHORITY

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TOWN OF ISLIP FOREIGN TRADE ZONE AUTHORITY Administrators of Foreign Trade Zone No.52

  2. WHAT IS A FTZ • The US Foreign Trade Zone Program was introduced by President Roosevelt in 1934 as part of the “New Deal” to promote and encourage international trade • It is intended to give United States-based companies increased global competitiveness by eliminating some of the disincentives associated with manufacturing in the U.S

  3. A Foreign Trade Zone is a site within the United States or near a U.S. Customs port of entry, where foreign and domestic merchandise is generally considered to be in international commerce • Foreign or domestic merchandise may enter this enclave without a formal Customs entry or payment of Customs duties or government excise tax

  4. 2 Types of FTZ’s • 1st Type – GENERAL PURPOSE ZONE A variety of activities for multiple users • 2nd Type – SUBZONE A Manufacturing Operations User who can not be accommodated in a general purpose zone

  5. WHY CHOOSE A FTZ • The Town of Islip Foreign Trade Zone is one of the Island's most valuable resources for companies engaged in international trade • Legally, a foreign trade zone is an area within the United States that is considered outside of U.S. Customs territory

  6. WHY CHOOSE A FTZ • Consequently, you can import certain types of merchandise into an FTZ without going through formal customs entry procedures or paying import duties • There are many benefits to being located in a FTZ which make a FTZ a more profitable way for local businesses to reduce costs and compete in the international marketplace

  7. Merchandise entering a zone may be: • Stored • Repackaged • Processed • Manipulated • Manufactured • Assembled • Repaired • Displayed • Tested • Mixed • Relabeled • Sampled • Salvaged • Destroyed • Cleaned

  8. DUTY DEFERRAL • One major benefit is increased cash flow from keeping the goods out of US Customs territory • Duties are paid on merchandise when it is entered into US Customs Territory • By deferring this payment, the business has the use of its money for the interim period thereby keeping these funds available for its operations

  9. Increased Cash Flow Example • A company imports 1000 pieces into the FTZ • 300 pieces are transferred into the US market • The duty is paid on 300 pieces not 1000 pieces • 3 months later 700 pieces goes out • Duty was deferred for 3 months on 700 pieces • Your company had an increased cash flow

  10. DUTY FREE • Duties are paid only on the goods entering the domestic marketplace • You may avoid paying duties altogether if your products are re-exported • Additionally, merchandise can be held indefinitely within the FTZ without any payment of customs duties

  11. Duty Elimination Example • 1000 pieces was imported • 200 pieces was transferred into the US market • Duty was paid on 200 pieces • 700 pieces didn’t sell and was re-exported • Duty on 700 pieces was eliminated • You avoided a drawback on 700 pieces

  12. DUTY REDUCTION • Inverted tariff relief is yet another benefit available in a Zone; finished products manufactured in a FTZ from components purchased abroad may be subject to an even lower rate of duty • With inverted tariff relief, a manufacturer may elect to pay duty on the component parts or the finished product, whichever rate is lower

  13. WEEKLY ENTRIES • The FTZ permits zone users to file one entry as opposed to multiple entries throughout the week, significantly reducing paperwork and expense

  14. QUOTAS • Quotas do apply to goods entered into US Customs territory • The goods which can be stored in the FTZ can be among the first to enter the US market when the quota is eased

  15. ADDITIONAL BENEFITS • Direct deliveries ease the movement restrictions of merchandise in and out of the country • Quota restrictions do not apply to goods admitted to zone

  16. Participants • Foreign Trade Zones Board in Washington D.C • Bureau of Customs & Border Protection • Grantee-Suffolk County • Operators • Users • Brokers • NAFTZ

  17. Bureau of Customs & Border Protection • Oversees zone operations • Agent of the FTZ Board

  18. Operator • Provide day-to-day oversight of zone activities, including • Recordkeeping • Marketing • Technical expertise

  19. User • Entity using zone for storage, handling, or manufacturing • Operator in some instances • Varied industries • Manufacturers • Petroleum refining • Computer and electronic production • Shipbuilding • Warehousing/distribution

  20. Brokers • Holder of license from Customs • Customs “expert” • Transacts Customs business on behalf of operator or user • Importer may transact business on its own behalf • Importer is always responsible party

  21. Additional Information • Contact us by: Phone: 631-588-5757 Visiting: 1 Trade Zone Drive Ronkonkoma NY 11779 www.ftz52.com Email: foreigntradezone@townofislip-ny.gov

More Related