Foreign Trade Zone Solutions
DHL has become one of the broadest networks of Foreign Trade Zones (FTZ) in the United States. With 14 active sites across the country, DHL offers extensive experience with administration services. Our team of experts can help your company to benefit from these special customs procedures by allowing delayed or reduced duty payments on foreign merchandise, as well as other savings.
What is a Foreign Trade Zone?
Foreign Trade Zones (FTZ) are secured, designated locations around the U.S. or near a U.S. Customs Port of Entry where foreign and domestic merchandise is generally considered to be an international commerce and outside of U.S. Customs territory. An FTZ can reduce or eliminate duty on imports and take advantage of other benefits to encourage foreign commerce with the U.S.
Customs duties and taxes will be due only at the time of transfer from the zone to U.S. consumption. No duties or taxes will be paid if you have merchandise that never enters the U.S. commerce.
DHL Foreign Trade Zone U.S. Locations
- Major FTZ competency Center located in Dallas, TX (DFW)
- DHL administrators located in Dallas, TX (DFW) and El Paso, TX (ELP)
- 10 general purpose zones: JFK, ATL, ORD, DFW, MIA, SAN, LAX, SFO, ELP and LRD
- 5 specific user locations: DFW (2), CMH, MIA and HOU
- 6 established customer operated sites: SFO, AUS, LEX, GSP, DEN and MLI
Benefits of a Foreign Trade Zone?
The benefits of a Foreign Trade Zone depend on the type of operation involved and authority granted by the Foreign Trade Zones Board and Customs. The use of a Zone can lead to better inventory control and security which results in better compliance with U.S. Customs and Border Protection (CBP) requirements.
Below are some of the benefits that will help you lower your cost and streamline your supply chain.
Duty Deferral
Customs Duties are paid only if and when goods are transferred out of the zone and into U.S. Customs Territory.
Duty Elimination
No duties paid until goods leave the zone. You only pay on final product.
Duty Reduction
Foreign Trade Zone users may elect to pay duties at either the rate of the foreign inputs or the rate applied to the finished product – which is often lower.
Expedite Trade
Direct Delivery reduces transit times for receipt of merchandise. Weekly Entry simplifies the custom entry process.
Inverted Tariff
The finished product results in lower duty rate than the rate on foreign input.
Logistics Benefits
Goods delivered direct to the zone using weekly entry or direct delivery to streamline customs procedures.
Duty Drawback
Goods placed into a zone are no longer required to file for Duty Drawback to recover duties.
Scrap/Waste
Duty may be reduced on foreign articles that become scrap/waste through FTZ activity.
Vendor Managed Inventory Programs
Receive and store vendor goods within Foreign Trade Zone boundaries.
Other Benefits
Foreign and domestic goods are exempt from state/local inventory taxes.
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