Foreign-Trade Zone #35

PhilaPort is the grantee of FTZ #35 which covers Southeastern Pennsylvania.

What is an FTZ?

A Foreign-Trade Zone (FTZ) is a duty-free, quota-free, secured area in a designated customs “port of entry,” considered outside U.S. Customs territory. FTZs were created to neutralize negative U.S. tariff impact on products used by manufactures operating in the United States and to keep U.S. businesses competitive with businesses operating offshore or overseas. Though the benefits of operating in a FTZ vary, they are substantial, and are certainly worth investigating.

Within a zone, foreign goods can be brought into the United States without formal customs entry for warehousing, assembly, manufacture, display, destruction or other processing. Duty payments can be deferred, reduced or eliminated when an FTZ is utilized.

General Purpose Zone/Magnet Site:

A General Purpose Zone or Magnet Site is a Zone Site, usually with indoor and outdoor storage space, intended to serve or attract multiple operators or users.

Subzone/Usage-Driven Site:

A Subzone or Usage-Driven site is a Zone Site (or group of Zone Sites) tied to a single Zone Operator or Zone User under the Alternative Site Framework.

Companies wishing to establish either type of zone must submit through PhilaPort, an application to the FTZ Board in Washington, D.C.

User Benefits

Foreign-Trade Zones Allow You To

Import and store goods duty-free for an indefinite period
Process imported goods to reduce duties
Import merchandise subject to quota or high rate of duty for eventual re-export
Eliminate duties on re-exported foreign merchandise
Destroy or re-export defective goods and waste materials without paying duties
Lower inventory costs
Hold goods in excess of a quota until the next quota period

Advantages of Foreign-Trade Zones

Reduces Cash Flow
Elimination of Merchandise Processing Fee for Cargo Exported from Zone
Defers Harbor Maintenance Fee
Eliminates U.S. Customs Duty Payments for Exported Merchandise
Reduces or Eliminates Custom Duties for Defective, Damaged, Obsolete, Waste & Scrap
Inverted Custom Duty Savings
Non-Dutiability of Labor, Overhead and Profit
Allows for Duty Avoidance for International Returns
Duty Elimination for Unused Spare Parts
Store to Defer U.S. Quota
Add Value to Product to Avoid U.S. Quota
Simplification of Import/Export Procedures
Quality Control
Eliminate Country-of-Origin Marking/Labeling Requirements
Additional Security
Inventory Control
Merchandise in an FTZ Pays no Duty
Exempt Inventory Taxes
Added Savings for 806/807 Program
Entireties Provision
Avoidance of Duty for Exhibited Merchandise
Reduced Storage Insurance Costs
Reduced Cargo Shipped Insurance Costs
Allowance of Zone-To-Zone Transfer
Temporary Removal Procedure
Antidumping/Countervailing Duties
Duty-Free Retail Containers
Potential Exemption of Compliance with Federal Laws
Enterprise Zone Coordination
Generalized System of Preferences Duty-Free Status
Transfer of Title
Utilization of General Accepted Accounting Systems for Inventory Control
Flexibility for Changing Regulations
Stages Duty Reductions
Potential Duty Reduction for Products of Communist Countries