Monroe County Foreign Trade Zone
A Foreign Trade Zone (FTZ) is a site within the United States designated by the Department of Commerce where foreign and domestic merchandise is considered to be in international commerce. A user can benefit from significant cost savings and logistical flexibility through the use of an FTZ.
Foreign merchandise may enter an FTZ without a formal Customs entry or the payment of Customs duties. Benefits include:
- Duty Reduction (Inverted Tariff)
In many cases, duties are higher for parts than for finished products. In an FTZ, a company can import parts duty free, assemble products, and only pay the duty on the final product, whichever is less expensive.
- Duty Exemption
Duties are not collected on goods brought into an FTZ which are then re-exported or scrapped. It is as if the goods never entered the U.S. stream of commerce.
- Duty Deferral
Duties are deferred on imports until they leave the zone and enter the U.S. stream of commerce. Customs duty is deferred as long as the goods are in the zone, which improves cash flow.
- Weekly Entry
FTZ users only pay one merchandise processing fee (MPF) per week instead of an MPF for every shipment.
As grantee of FTZ #141, Monroe County can assist with FTZ designation to any qualified business in Monroe County.