FOREIGN TRADE ZONES
Congress created Foreign Trade Zones (FTZ) in 1934 to facilitate international trade and increase the global competitiveness of U.S.-based companies. A Foreign Trade Zone is like an island in the sea of international commerce and is considered to be “outside of the United States”. The program continues to thrive and change to better meet the needs of American companies in the global economy.
The Medina County Board of Commissioners took action to compete in the global economy in November 2004 by joining the Northeast Ohio Trade and Economic Consortium (Neotec) – Neotec is a ten county regional organization that is the Grantee of Foreign Trade Zone #181. As a result of that membership, Medina County now has four locations with zone designation. Additional locations can be approved within 30 days.
Benefits of FTZ:
Duty Deferral: Customs duties are paid only when and if merchandise is transferred into U. S. Customs territory.
Duty Reduction: If the rate on the items admitted to the zone is higher than the rate applied to the finished product, the company can choose to pay the lower duty rate.
Duty Elimination: No customs duties are paid on merchandise exported from a FTZ. Generally, customs duties are also eliminated for merchandise that is scrapped, wasted, destroyed or consumed in a zone.
Direct Delivery: Companies can apply for authority to receive product, break seals and clear customs within the FTZ facility, thereby bypassing the congestion of seaports.
Weekly Entry: Companies can reduce Merchandise Processing Fees by combining shipments on one entry filed weekly.
Contact Bethany Dentler, Executive Director of the Medina County Economic Development Corporation, at 330-722-9215 or email@example.com to find out more.