US Foreign-Trade Zones (FTZs) pose multiple benefits, other than duty deferred and inverted tariff, which companies can use to benefit their bottom line. However, a majority of companies are not utilizing FTZs to their full potential because sometimes the unknown creates uncertainty. But, that shouldn’t hold you back. Many organizations overlook the benefits that operating a FTZ can provide throughout the company. Here are some additional tools and benefits companies can use to leverage FTZs:
- Shorter transit time for merchandise thanks to direct delivery. Think of this like a fast pass, that helps companies clear the port faster, and avoid getting held up for paperwork processing. This helps goods clear a port in considerably less time. Most clients have seen their goods 2 to 3 days sooner than before they operated in a zone.
- Accurate classification and compliance tools available to audit and report data accurately. HS classification and other information required to make an admission is housed in one central location, increasing visibility from the zone operations and allowing for easier tracking of data elements.
- Stronger inventory controls. All activity, including adjustments, needs to be tracked by the ICRS (Inventory Control and Record Keeping System) so the zone operator has the ability to run reports and evaluate the inventory tracking and control methods. The visibility into these transactions can save the company money and allow business to run smoother.
- Linking of the entire supply chain. At times, a supply chain can become or feel very segregated; however, it is integral for the FTZ to take each aspect and tie it all together. The zone becomes the source of information for in transit goods, compliance data, and inventory controls. Utilizing this perspective can help your company find many ways to run a more efficient and successful operation.
As you can see from the points above, operating an FTZ provides exciting benefits to a company! What’s also exciting is that there are tools that exist to help your company manage import and export operations, while maximizing savings opportunities. Integration Point Foreign Trade Zone Management Software provides a single web-based platform using software-as-a-service (SaaS) and allows for simplified automated filing, reporting, and management of any zone in any industry. With the help of Integration Point, your company can fully reap the benefits of operating an FTZ.