Making Foreign Trade Zone #114 Work for You

What is a FTZ?
A foreign trade zone is a designated site where foreign or domestic products can be brought without formal U.S. Customs entry.  These products generally are considered by our government as international commerce – so there is no formal customs entry procedure and no payment of duties or excise taxes unless, and until, the products enter Customs territory for domestic consumption.

If you are importing or exporting products or materials, you get the opportunity for significant cost savings when you use Foreign Trade Zone #114. Click here for locations

When should you consider using FTZ #114?
Foreign Trade Zone #114 should be considered for your firm if you import products that:
• are subject to U.S. customs duties
• are subject to import quotas
• are subject to an inverted tariff on either the finished products or the component parts
• need inspection, marking, labeling, repair, destruction, repackaging, testing, sampling, or
cleaning before entering U.S. Customs territory
• need to be stored for an uncertain period of time
• need to be displayed for potential buyers
• will be re-exported, in whole or part

You might also consider the benefits of FTZ #114 if you:
• assemble, manufacture, process or manipulate products consisting of foreign or 
co-mingled foreign and domestic products
• experience product costs or shipping expenses increasing faster than inventory turnover

What are the advantages of using FTZ #114?
• Centrally located in the heart of the United States
• Most foreign-made parts, components and merchandise may enter a zone without
payment of U.S. customs duties, fees and certain taxes
• Defer payment of import duties until goods are shipped from FTZ #114 into the U.S.
domestic market
• Eliminate payment of import duties on goods exported from FTZ #114
• Choose the lowest duty classification on either the finished product or on components.
• Pay lower insurance costs because duties and taxes are not included in calculating the
value of your products
• Reduced duty paid on imports and products warehoused, manipulated or manufactured
for export

What type of company uses foreign trade zones?
Although a majority of U.S. exporters are small businesses, both large and small businesses use foreign trade zones.  Because these companies can eliminate or at least defer many of the costs that come with importing goods with foreign trade zones, these firms will ultimately benefit.  If a firm fails to purchase imported goods, a foreign trade zone will be of no benefit.

Click here for more information on foreign trade zones and Foreign Trade Zone #114.