Integration Point is the industry leader for U.S Foreign Trade Zone FTZ software as well as the standard in FTZ expertise for implementation and support of zone automation.
US Foreign-Trade Zones (FTZ) have been operational since the 1930s, when the foreign-trade zone program was created to provide a secure facility for imports into the US. This long history has been peppered with additional legislation, rules and compliance regulations such as the Trade & Development Act of 2000 which gave FTZs the ability to utilize weekly entry processing for all goods coming out of an FTZ and into the US commerce. But with every change, FTZs continue to provide organizations with increased benefits and savings opportunities.
Many companies often wonder whether the participation in an FTZ — general purpose or subzone — is the right approach for them. The answer is — it depends. Are you importing to the US on a regular basis in high volume? Are you looking to be more competitive with foreign counterparts? Are you looking for a way to reduce importing costs and save money? Do you need a better way to reconcile inventory on a monthly, if not daily, basis? Do you export high volumes? While the answers vary based on the company answering, the benefits of participating remain the same.
What are the benefits of participating in a FTZ?
- Save money and assist the US economy through job creation
- Take advantage of the inverted tariff rule that states if you bring in parts that are manufactured into a whole, you can pay the duty of the whole instead of the parts
- Eliminate individual entry filings by filing one consolidated entry per week and thus reduce fees
- Run more efficient inventory control systems
- Benefit from duty avoidance for exported and scrapped items
- Participate in special Customs procedures such as direct delivery to expedite the movement of cargo
Who can apply to participate in a Foreign-Trade Zone?
Any company in any industry can apply to be a part of an FTZ. The process is lengthy — 9 to 12 months, depending on the industry and if a FTZ is being created or if you are participating in one that already exists. Here is just a sampling of industries that Integration Point has assisted with managing an FTZ:
- Apparel and Footwear
- Consumer Goods
- Food Products
- Logistics Service Providers (LSPs)
Are you already participating in an FTZ? For those companies that already participate in an FTZ, one of the biggest obstacles to overcome is inventory control and reconciliation, as well as reporting for internal purposes and completing the FTZ Annual Board Report. Integration Point Foreign-Trade Zone Software has assisted hundreds of organizations in customs compliance, inventory control and reconciliation, and reporting in their FTZs.