November 2024

Foreign Trade Zones (FTZs) offer powerful benefits for businesses, particularly those involved in global supply chains. By enabling companies to defer, reduce, or eliminate Customs duties on imported goods, FTZs help lower operational costs and improve competitive edge. In some use cases, duties for goods stored, processed, or assembled within an FTZ are due once the items enter U.S. commerce, which can streamline financial operations and significantly enhance cash flow management. If goods are ultimately exported from the FTZ, companies can avoid paying duties entirely, further reducing costs and facilitating international distribution.

FTZs also support more efficient logistics and inventory management. By consolidating shipments and performing Customs processes within the FTZ, businesses can simplify documentation and processing, which saves both time and expense. FTZs improve supply chain flexibility, allowing companies to adjust inventory levels and hold stock in the U.S. market-ready for distribution without incurring immediate Customs costs. As a result, FTZs contribute to smoother, more efficient supply chains and ultimately free up more resources to focus on growth and expansion.