New federal Foreign Trade Zone (FTZ) designations have been created in seven U.S. locations to reduce the duties and tariffs imposed by the U.S. Customs Department.
Riverside County, California; Victorville, California; Fort Lauderdale, Florida; Boundary County, Idaho; Terre Haute, Indiana; and Martinsburg, West Virginia, were all recently designated FTZs. Items manufactured, remanu-factured, assembled, repackaged, relabeled or destroyed within the zones will not be assessed duties until and unless the finished product is shipped to another location within the United States. (Typically, imported parts are taxed on arrival at American ports.) Thus, those items exported directly out of FTZs to foreign lands are never taxed.
Individual FTZs offer even more incentives, but the overall goal is the same for each: to stimulate local economies and job creation by making the U.S. manufacturing industry more competitive.
- Foreign Trade Zone Association, www.naftz.org