20 Ways to Win in a Foreign Trade Zone

1. Duties are not owed on labor, overhead or profit attributed to FTZ production operation.
2. Since merchandise in a FTZ is considered to be outside U.S. Customs territory, imports may enter and be held in a FTZ without customs duties.
3. Customs duties are not paid on merchandise exported from a FTZ.
4. Duties are reduced or eliminated on material subject to defect, damage, obsolescence, waste and scrap.
5. FTZ users can pay the duty rate on component material or merchandise produced from component materials-whichever is lower.
6. Merchandise may be exported and returned without duty payment until it enters the U.S. Market for domestic distribution.
7. Spare parts may be stored, returned or destroyed without paying duty.
8. Merchandise subject to U.S. quotas may be held in a FTZ until quotas open.
9. Delays in customs clearance and duty drawback procedures are eliminated.
10. Quality control inspections can identify substandard goods to be destroyed or returned without duty payment.
11. No country of origin labels are required on merchandise admitted to a FTZ.
12. Customs supervision of security procedures saves an individual security expenses and insurance.
13. Increased accountability reduces problems with inaccurate inventory, receiving and shipping, and helps track waste and scrap.
14. Merchandise that is exported in a FTZ is not subject to state and local ad valorem taxes. Most states and counties exempt all FTZ merchandise from inventory taxes.
15. Merchandise may be held for exhibition without duty payment.
16. Duty payable on FTZ merchandise need not be included when calculating insurable value.
17. Due to FTZ security, discounted cargo insurance rates (up to 40%) have been negotiated.
18. No duty is owed on in-bond, zone-to-zone transfer of FTZ merchandise.
19. Title of merchandise may be transferred in a FTZ if there is no "retail" sale.
20. Specific merchandise ID is unnecessary. FIFO (first in - first out) and FOFI (foreign first) inventory methods are acceptable in a FTZ.

Even More Incentives From The McAllen FTZ

• Cartman's bond provided for carriers' shipment of merchandise between the Foreign Trade Zone and the international bridge or airport.
• On-site customs inspection.
• No property taxes are charged on in-bond or in-transit inventories.
• Property taxes on the land are paid by the McAllen FTZ.
• Property taxes are paid on the buildings owned by the McAllen FTZ.
• 24-hour security.
• All city services are provided, including water, sewage, and electricity.
• Access to rail service via Union Pacific, Southern Pacific, and Rio Valley Railroads.
• Building lease rates include electrical and general maintenance services unless specified otherwise.
• Office lease rates include electrical, janitorial and general maintenance services.