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On this page Roberto Gallegos will be bringing to you monthly updates on new issues and topics concerning import / export activities.
Mr. Gallegos is a licensed customs broker for Sanyo Customs Brokerage Inc. He holds a degree in international business and has been involved in import / export activities on the US / Mexico border for over 7 years.

 


Foreign Trade Zones (August 1997)

 

The United States Customs Service now allows more companies to utilize the benefits of the Foreign Trade Zones (FTZ) and Foreign Trade Zones Weekly Entry. The Foreign Trade Zone is an area located on the United State's soil where products can be manufactured and stored without being assessed for United States duty. This benefits companies that assemble their products in the United States and companies that manufacture a quota regulated product.
The company that assembles goods in the United States from parts manufactured abroad would normally have to pay a duty on each of the individual parts entering the United States. The Foreign Trade Zone allows them to assemble the product on U.S. soil and not pay a duty until the product is ready for consumption. Thus allowing the companies to pay the duty on the completed product as opposed to parts and pieces. This defers cost until the product is complete and avoids numerous duty assessments.
The company that manufactures a product that the United States Government has a quota on can store their goods on U.S. soil in the FTZ until the quota is lifted. The goods can then be distributed.
The FTZ weekly entry allows companies that cross the border many times in one week with a consistent inventory to file all forms and pay all fees for that entire week, all at one time This alleviates a lot of the paper work for the company, making border crossing quick and efficient. If you qualify for FTZ weekly entry, your fees may even be lowed due to the high volume of regular shipments you make.
Formerly, Foreign Trade Zones were restricted to the use of companies that either manufactured or changed the form of their product within the Foreign Trade Zone. Now regulations have been broadened to include more companies.






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