Foreign Trade Zone No. 284

 

A Foreign-Trade Zone (FTZ) is a...secured, designated location in the United States, in or near a U.S. Customs Port of Entry, where foreign and domestic merchandise is generally considered to be in international commerce (i.e., outside of the U.S. Customs territory).  Because an FTZ is considered to be “outside” the customs territory of the United States, foreign or domestic merchandise may enter without a formal customs entry, or the payment of customs duties or government excise taxes. 


The purpose of Foreign-Trade Zone (FTZ) is to...stimulate international trade and create jobs and investment in the United States rather than abroad.


Foreign merchandise may enter a Foreign-Trade Zone without a formal Customs entry or the payment of Customs duties or government excise taxes. 

  1. If the final product is exported, no U.S. Customs duties or excise taxes are levied. 
  2. If the final product is imported into the United States, Customs duties and excise taxes are due only at the time of transfer from the FTZ into the U.S. (formal entry)
  3. If authorization has been granted, the duties paid are the lower of those applicable to the final product itself or its component parts (inverted tariff option).


What types of benefits does a FTZ provide to businesses?           

FTZs help businesses lower the costs of international transactions. These types of savings include:

Duty Deferral- Companies can delay payment of duties on goods that enter the U.S. market

Duty Exemption- No duties or quota charges are levied on imported goods which are later re-exported

Inverted Tariff- Manufacturing-specific benefits - with case-by-case approval by the FTZ Board - can include the reduction of duties if a lower tariff rate applies to the finished product leaving the zone than the tariff rates that would have applied on foreign components.

Logistical Benefits-Reductions in merchandise processing fees are an added benefit, because zone users can file a single customs "entry" (and pay a single fee) per week rather than making multiple entries during the course of a week

Other benefits include: elimination of duties on waste, scrap and rejected or defective parts

 

Ready to learn more?- Upcoming Events

 

  • Genesee County Overview of Advantages of a FTZ Brochure
  • What is the Purpose of a FTZ Brochure
  • FTZ Zone Merchandise and Bonded Warehouse Information Brochure

Helpful Websites

 

Zone Schedule and Fees

FTZ No. 284 Annual Fees

FTZ No. 284 Zone Schedule 

Can Your Company Benefit from Using Foreign-Trade Zone No. 284

 
 

 

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