FTZs are considered to be outside of U.S. Customs Territory for the purpose of customs duty payment. Therefore, goods entering FTZs are not subject to customs tariffs until the goods leave the zone and are formally entered into U.S. Customs territory. Merchandise that is shipped into foreign countries from FTZs is exempt from duty payments. This provision is especially useful to firms that import components in order to manufacture finished products for export.
There is no time limit on goods stored inside a FTZ and certain foreign and domestic merchandise held in FTZs may be exempted from state and local inventory taxes. This allows firms to minimize their costs while their products are waiting to be shipped. In addition, quota restrictions are in some cases waived for items entering an FTZ; however, the restrictions would apply if the items were to enter the U.S. market.
A variety of activities can be conducted in a zone, including assembling, packaging, destroying, storing, cleaning, exhibiting, re-packing, distributing, sorting, grading, testing, labeling, repairing, combining with foreign or domestic content, or processing.
With our warehouse being Foreign Trade Zone compliant, we are in constant communication with US Customs. Our warehouse is equipped with 24/7 surveillance, and our staff has been vetted by US Customs. Our office is efficient in completing various Customs documents such as 214s, 216s, and 7512 T&E bonds. Silver Foam Distributing also uses an inventory control software system so your products are accounted for and properly released for shipment in whichever way you request.