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The Allen County Commissioners purchased over 350 acres of I-75 fronted commercial/industrial property. The site is home to the first Foreign Trade Zone ever to exist in Allen County This site sports a 135-acre general purpose zone extension of Rickenbacker Foreign Trade Zone #138. Companies active in foreign trade benefit from locating in FTZ’s in many ways because the FTZ is considered to be outside of US Customs.
Other benefits to businesses locating on the site include rail service, infrastructure improvements and immediate access to Interstate 75.
What is a Foreign-Trade Zone?
A foreign-trade zone is a location in the United State legally considered to be outside U.S. Customs Territory. Goods may be brought into an FTZ without formal customs entry or paying duty charges. Inside an FTZ, merchandise may be stored, processed, assembled, repackaged, displayed, mixed, repaired, destroyed, manufactured, re-labeled and re-exported.
Potential Benefits for Business
The fundamental benefit offered by the FTZ program is the ability to POSTPONE, REDUCE or ELIMINATE Customs duties on products admitted to the zone.
- The FTZ program encourages U.S.-based operations by removing certain disincentives associated with manufacturing in the U.S.
Duty Savings
POSTPONE duty payment on foreign merchandise until said merchandise physically leaves the FTZ facility either in its condition as admitted into the FTZ or as part of a finished article - commonly referred to as "the duty deferral principle".
- REDUCE customs duties on foreign components, which carry a higher duty rate than the finished article - commonly referred to as "the inverted tariff principle".
- ELIMINATE customs duties on foreign merchandise, which is re-exported from the United States either in its condition as admitted into the FTZ or as a part of a finished article.
- Avoids the duty drawback
- ELIMINATE customs duties on foreign merchandise which is defective or which, during the production cycle, becomes waste.
- There is no limit on the length of time that merchandise can remain in a zone.
- U.S. Quota restrictions do not apply to merchandise admitted to zones until it moves into U.S. commerce.
- Merchandise may be transferred from zone to zone without Customs duty until it moves into U.S. commerce.
Inventory Tax Savings
- In a General Purpose Zone all merchandise is exempt from Ohio inventory taxes.
- In a Subzone, only imported merchandise is exempt from Ohio Inventory taxes.
Time Savings
- Direct Delivery permits merchandise to move directly to manufacturing facilities without being held up at a port of unloading.
- Weekly entry provides for filing a single entry per week rather than multiple entries resulting in paperwork reduction.
For more information regarding the FTZ contact us at info@aedg.org.
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