FOREIGN TRADE ZONES
Whether you are a company looking to improve your cost competitiveness, or an economic development organization looking for a way to attract local investment, we can show you how this federal program can shave millions from the cost of doing business internationally, and help buffer your organization against abrupt cost increases in a constantly changing trade environment. Already running an FTZ? Support from our team gives you access to a level of experience unmatched in the industry. No more waiting for your ticket to ‘escalate’!
- Inverted Tariffs
- Duty-Free Manipulation
- Merchandise Processing Fee
- Broker Fees
- Carrying Costs
- Direct Delivery
- Reject, Scrap, and "Consumed" Merchandise
- Duty Avoidance on Waste, Spoilage and Off-fall
- Zone-To-Zone Transfers
- Quota Timing
Some manufacturers face the situation where the duty rate on the parts they import is higher than the duty rate would be if they imported their finished product from abroad. That means the duty rate would be lower if they moved their factory outside the country, contrary to government intent. To resolve this anomaly, the Foreign-Trade Zone program allows manufacturers to pay duty at the rate of either the input part rate or the rate of the finished good, whichever is lower. This is typically the largest category of savings for companies that qualify for the Zone program, and can be more than $10 million per year for large manufacturers.
Goods imported into the zone may be tested, inspected, re-packaged, re-labeled, aged, cured and exhibited; all without payment of duty. U.S. Customs duty is paid only when and if the goods are withdrawn from the zone, only on the quantities withdrawn, and only on the value of the foreign inputs.
U.S. Customs assesses a "Merchandise Processing Fee" (MPF) per entry which is calculated as 0.3464% of the declared value of the merchandise, up to a maximum of $485 per entry. Foreign-Trade Zones users are only required to submit one entry per week for all shipments leaving the Zone, helping to ensure Zone operators never pay more than the $485 cap per week. This is typically one of the largest category of savings for companies that qualify for the Zone program, especially for distribution companies.
The Department of Commerce has recently taken steps to make it faster and easier to get into the Foreign-Trade Zones program. However, many companies need help developing and implementing the new reporting requirements that U.S. Customs places on program participants. We can make an accurate calculation of the savings your firm might enjoy through participation in the U.S. Foreign-Trade Zones program and help you through all phases of implementation if that is warranted. We have setup manufacturing and distribution Zones in ports across the country and can guide you all the way through startup and operation to make sure you capture every amount to which you are entitled.
DON’T JUST FOLLOW THE RULES
USE THEM TO MAKE YOUR BUSINESS MORE PROFITABLE
Travis Van Genderen
"I am not sure how we would have completed our foreign-trade zone implementation without ISCM. We have a complicated manufacturing operation with an international supply base. ISCM was able to spot and address problem areas before they became impossible hurdles. Now that our FTZ is live in the factory, we use ISCM to support our administrative staff whenever they need it."
General Manager | Logistics Promotion Department / KUBOTA Corporation
"ISCM met with federal officials time and again to keep our FTZ moving. We really appreciated how they understood the budget for our project and remained focused on achieving our goals within available resources. I would recommend ISCM as the first call for any organization trying to access the U.S. Foreign-Trade Zones program."
"I wish everyone supported our zone project the way ISCM does! As the FTZ Specialist responsible for administering all five of our zone sites, I need fast answers when questions or problems do come up. We get a fast response no matter when we call or write, and with ISCM, I never have to wait for my issue to be escalated! Our team in Japan reaches out from time to time as well, so we really appreciate their ability to handle our questions from time zones all over the globe."
Laylan Hime, AZS, CCS
"Our zones were already in place when we hired ISCM, and we have a top-notch compliance group that takes care of import requirements such as classification of our products from around the world. We use ISCM’s experience when we have specific questions related to FTZ operations here in the Port of LA. It is great to know I have the support I need when questions or problems come up."
"Right from the start of the project it became obvious that ISCM had the experience we needed to make our FTZ project successful. It was like learning a new language, and all of our folks really appreciated the patient way training was provided to make sure we were as ready as possible for our first day. Now we are able to run an effective zone project for our textiles distribution center, and know help is available whenever we need it."
"Our business model requires the uninterrupted movement of a significant volume of finished goods, parts and accessories across international borders – particularly into and out of the United States - which is a challenge in a dynamic trade environment. We have a sophisticated import/export compliance group, but when specific foreign trade zone operating advice is needed, we rely on ISCM. ISCM personnel have had the practical, hands-on experience of actually administering/operating a foreign trade zone. That is why we use ISCM and why I would recommend ISCM to anyone for whom compliance with U.S. Customs regulations in their FTZ operations is a prerequisite for success."
"As an economic development professional it was refreshing to work with a company that really understood the needs of the international business community, as well as those of the civic groups and officials charged with diversifying the local economy. ISCM quickly focused us on the tasks that would be productive to reach our goals, and helped us understand aspects of foreign-trade zone setup and administration that had not been clear to us before. I recommend they be the first call for any organization considering the FTZ program."
"Our CEO did an analysis that said our FTZ project would improve our margins and help us expand our export opportunities. That is a significant cost reduction for our distribution company. ISCM guided us through every step of the process and now supports our successful zone project via email, telephone, and in person whenever we request."
"Jefferson County Economic Development Corp. has been fortunate to be able to utilize the expertise of ISCM to usher us through the entire process of setting up a foreign-trade zone . The team at ICSM has worked tirelessly with government officials in our area and in Washington, D.C. to shepherd our application though the complicated FTZ approval process. They also helped us understand the role of the administrator and helped us through the entire implementation process. We are so pleased with the care and time ICSM took to explain our responsibilities to ensure that we were fully prepared when our approval was given by the FTZ Board. ICSM and their team are true professionals who are extremely knowledgeable and helpful which is why they should be any entity’s first call when investigating a foreign-trade zone."
Col (ret) Douglas Lengenfelder, USAF
"I am no stranger in Washington, but we reached out to ISCM when we needed someone to go to bat for us with the specific DC officials that had to support our project. Ever mindful of budget constraints, we had been working independently on our foreign-trade zone project without making much headway. Things really started to happen once we got ISCM involved, and now FTZ #295 has been established to support employment in our southwest Pennsylvania business community."
"Don’t tell Sean, but most of the consultants we talked to told us our FTZ project was impossible. ISCM showed us the changes we would need to make to our approach in order to make our vision a reality. Now we produce over 200,000 tractors, implements and utility vehicles per year on 11 production lines in 5 different Georgia factories using the Foreign-Trade Zones program. They not only showed us exactly what to do, but helped us along every step on the way, and now support our growing zone project whenever we need it."