Verde Fulfillment USA is an active Foreign Trade Zone (FTZ). We offer these FTZ specialized services to our existing clients, as well as manufacturers in the greater Intermountain and Rocky Mountain Regions of the US. If you feel these services are something you can benefit from, let us know and we can talk you through it all from A - Z and see if it can compliment your new or existing supply chain.
What is a Foreign Trade Zone (FTZ)?
Foreign-Trade Zones are secure areas under U.S. Customs and Border Protection (CBP) supervision that are generally considered outside CBP territory. An FTZ is also known internationally as free-trade zones. Foreign merchandise may be moved into zones at any time for storage, light-assembly, light-manufacturing, quality control, testing, relabelling, repackaging, cleaning and processing. Under Verde’s FTZ procedures, CBP entry procedures and payments of duties are not required on the foreign merchandise unless and until it enters the US CBP territory for domestic US consumption.
Benefits of Using A FTZ:
- Duty Elimination: The duty and federal excise tax are paid only when the merchandise is transferred from the FTZ for US consumption. Goods may be exported from the zone free of duty and excise tax.
- Duty Deferred: While in the zone, merchandise is not subject to U.S. duty or excise tax, and merchandise may remain in a zone indefinitely,whether or not subject to duty.
- Inverted Duty: The rate of duty and tax on the merchandise admitted to a zone may change as a result of operations conducted within the zone. Therefore, the zone user who plans to enter the merchandise for consumption to CBP territory may normally elect to pay either the duty rate applicable on the foreign material placed in the zone or the duty rate applicable on the finished goods transferred from the zone whichever is to his advantage or lower.
- Merchandise Processing Fees: Using an FTZ allows users to combine all weekly shipments into one processing entry fee with a maximum cost of $485, versus each individual shipment with a fee of $485.
What Activity Can Take Place In the FTZ?
Merchandise in a zone may be: Assembled, Cleaned, Manipulated, Manufactured, Mixed, Processed, Relabeled, Repackaged, Repaired, Salvaged, Sampled, Stored, Tested, Destroyed