In the United States, a foreign-trade zone (FTZ) is a geographical area, in (or adjacent to) a United States Port of Entry, where commercial merchandise, both domestic and foreign, receives the same Customs treatment it would if it were outside the commerce of the United States. The purpose of such zones is to help American businesses to be competitive in the global economy by reducing tariff burdens on the importation of foreign inputs and on exported finished products. [1] Another definition of an FTZ states that it is an isolated, enclosed and policed area operated as a public utility, furnished with facilities for loading, unloading, handling, storing, manipulating, manufacturing and exhibiting goods and for reshipping them by land, water or air. [2] Merchandise of every description may be held in the zone without being subject to tariffs (customs duties) and other ad valorem taxes. This tariff and tax relief is designed to lower the costs of U.S.-based operations engaged in international trade and thereby create and retain the employment and capital investment opportunities that result from those operations.
These special geographic areas – foreign-trade zones – are established "in or adjacent to" U.S. Ports of Entry and are under the supervision of the U.S. Customs and Border Protection under the United States Homeland Security Council. The relevant state government must also have passed a law enabling the establishment of such zones.
Since 1986, U.S. customs' oversight of FTZ operations has been conducted on an audit-inspection basis known as compliance reviews, whereby compliance is assured through audits and spot checks under a surety bond, rather than through on-site supervision by customs personnel. [3]
There are over 230 foreign-trade zone projects and nearly 400 subzones in the United States. [4] [5] [6]
The U.S. foreign-trade zones program was created by the Foreign-Trade Zones Act of 1934. The Foreign-Trade Zones Act was one of two key pieces of legislation passed in 1934 in an attempt to mitigate some of the destructive effects of the Smoot-Hawley Tariffs, which had been imposed in 1930. The Foreign-Trade Zones Act was created to "expedite and encourage foreign commerce" in the United States.
Through World War II, manufacturing activity was allowed only on a very limited basis. In 1950, the original act was amended to open up FTZs to manufacturing, but it had little impact until 1980. In that year, Congress again amended the act so that products manufactured in the zones would not be assessed on U.S. value-added. This ensured that the only tariffs a producer inside the zone selling to U.S. customers would pay, would be on the raw materials imported into the zone. This "integrated" model, which replaced the previous "island" model, spurred growth in the U.S. foreign-trade zones program. [4]
U.S. FTZs pose multiple benefits, other than duty deferred and inverted tariff, which companies can use to benefit their bottom line. However, a majority of companies are not utilizing FTZs to their full potential because sometimes the unknown creates uncertainty. [7]
Some of the benefits of operating a FTZ include: [8]
Inverted tariff benefits exist when the duty rate for the overall finished good is lower than the duty rate of the component parts. Therefore, by manufacturing finished goods within an FTZ, US importers can take advantage of the inverted tariff duty rate, all while keeping manufacturing operations within the US. Inverted tariff works when an importer with manufacturing authority within an FTZ is allowed to admit their components into the zone duty-free, manufacture the finished good, and pay CBP duties on the foreign content in the finished good at the lower duty rate of the finished goods at the time of entry. The importer avoids paying the higher duty rate on the component parts and defers the lower duty payment on the value of the foreign content until the time of consumption in the commerce of the US. Inverted tariff is seen predominantly in the manufacturing industry, benefiting automotive, petroleum, pharmaceutical, aerospace, electronics, textile companies and many more. [9]
Any company in any industry can apply to be a part of an FTZ. Companies importing to the U.S. on a regular basis and in high volume are the main participants. It is a way to reduce importing costs and save money by participating in special customs procedures and simplifies processes to run more efficient inventory control systems.
The process to register into one used to be lengthy — 9 to 12 months, depending on the industry and if a FTZ is being created vs. expanded. [10] This changed in 2011, when Alternative Site Framework (ASF) was introduced.
Alternative Site Framework (ASF) provides a streamlined process for foreign-trade zone grantees to quickly expand operations within their given service area. Grantees that have transitioned over to ASF are granted 2,000 "virtual" acres to designate sites within their service area, sometimes as quickly as thirty (30) days. As opposed to the Traditional Site Framework, this ASF option doesn't require a grantee to go through a traditional boundary modification for expansion purposes. [11] Companies now have the option to select between establishing their business in a usage-driven site or a magnet site.
Usage-driven sites are sites within a grantee's service area, that must go through a designation and activation process with the grantee and the Foreign-Trade Zone Board prior to initiating operations. Under ASF, usage-driven sites replace the role that subzones once held – allowing companies to operate under FTZ status while being located outside of what used to be called "general purpose zones" or now known as magnet sites under ASF. [12]
Magnet sites are usually industrial parks or multi-tenant sites within a grantee's service area, which have already been designated by the Foreign-Trade Zone Board. Once a company that's established in said industrial park wants to operate as an FTZ, it must only go through the designation process with the help of the grantee and local customs. Under ASF, magnet sites replace the role that general purpose zones once held – industrial parks that serve commerce as a public utility.
A foreign-trade subzone is an area approved by the Foreign-Trade Zones Board for use by a specific company. Foreign-trade subzone companies enjoy all the same benefits as foreign-trade zone companies, but subzones are located outside existing general-purpose sites within 60 miles of the port of entry. Subzones allow companies that import and/or re-export products to take advantage of foreign-trade zone benefits without having to physically relocate within the foreign-trade zone general purpose sites. These sites are becoming obsolete with the implementation of ASF.
Companies have the ability, utilizing drawback filings, to recoup up to 99% of the duties paid on goods previously imported into the US, that are later exported and drawback can be claimed for goods exported up to three years prior to filing a claim with customs. [13]
State | Zone | Grantee | CBP port of entry |
---|---|---|---|
Alabama | FTZ 82 | City of Mobile | Mobile |
Alabama | FTZ 83 | Huntsville-Madison County Airport Authority | Huntsville |
Alabama | FTZ 98 | City of Birmingham | Birmingham |
Alabama | FTZ 222 | Montgomery Area Chamber of Commerce | Birmingham |
Alabama | FTZ 233 | Dothan-Houston County Foreign-Trade Zone, Inc. | Panama City |
Alaska | FTZ 108 | City of Valdez | Valdez |
Alaska | FTZ 160 | Port of Anchorage | Anchorage |
Alaska | FTZ 195 | Fairbanks Economic Development Corp. | Fairbanks |
Alaska | FTZ 232 | Kodiak Island Borough | Kodiak |
Arizona | FTZ 60 | Nogales-Santa Cruz County Economic Development Foundation, Inc. | Nogales |
Arizona | FTZ 75 | City of Phoenix | Phoenix |
Arizona | FTZ 139 | Arizona Regional Economic Development Foundation | Naco |
Arizona | FTZ 174 | Sun Corridor, Inc. | Tucson |
Arizona | FTZ 219 | Greater Yuma Economic Development Corp. | San Luis |
Arizona | FTZ 221 | City of Mesa | Phoenix |
Arizona | FTZ 277 | Greater Maricopa Foreign Trade Zone, Inc. | Phoenix |
Arkansas | FTZ 14 | Arkansas Department of Industrial Development | Little Rock |
Arkansas | FTZ 273 | City of West Memphis Public Facilities Board | Memphis |
California | FTZ 3 | San Francisco Port Commission | San Francisco |
California | FTZ 18 | City of San Jose | San Jose |
California | FTZ 50 | Board of Harbor Commissioners of the Port of Long Beach | Los Angeles / Long Beach |
California | FTZ 56 | City of Oakland | San Francisco |
California | FTZ 143 | Port of Sacramento | Sacramento |
California | FTZ 153 | City of San Diego | San Diego |
California | FTZ 191 | City of Palmdale Economic Development | Los Angeles / Long Beach |
California | FTZ 202 | Board of Harbor Commissioners of the City of Los Angeles | Los Angeles / Long Beach |
California | FTZ 205 | Board of Harbor Commissioners, Oxnard Harbor District | Port Hueneme |
California | FTZ 226 | Board of Supervisors of the County of Merced | Fresno |
California | FTZ 231 | Port of Stockton | Stockton |
California | FTZ 236 | City of Palm Springs | Palm Springs |
California | FTZ 243 | City of Victorville | Victorville |
California | FTZ 244 | March Joint Powers Authority | Los Angeles / Long Beach |
California | FTZ 248 | City of Eureka | Eureka |
California | FTZ 257 | County of Imperial | Calexico |
California | FTZ 276 | Kern County | Meadows Field Airport |
Colorado | FTZ 112 | Colorado Springs Foreign-Trade Zone, Inc. | Denver |
Colorado | FTZ 123 | City and County of Denver | Denver |
Colorado | FTZ 293 | Town of Limon | Denver |
Connecticut | FTZ 71 | Economic and Industrial Development Commission of Windsor Locks | Hartford |
Connecticut | FTZ 76 | Bridgeport Port Authority | Bridgeport |
Connecticut | FTZ 162 | Greater New Haven Chamber of Commerce | New Haven |
Connecticut | FTZ 208 | New London Foreign Trade Zone Commission | New London |
Delaware | FTZ 99 | State of Delaware | Wilmington |
Florida | FTZ 25 | Broward County | Port Everglades |
Florida | FTZ 32 | Greater Miami Foreign Trade Zone, Inc. | Miami |
Florida | FTZ 42 | Greater Orlando Aviation Authority | Orlando |
Florida | FTZ 64 | Jacksonville Port Authority | Jacksonville |
Florida | FTZ 65 | Panama City Port Authority | Panama City |
Florida | FTZ 79 | City of Tampa | Tampa |
Florida | FTZ 135 | Port of Palm Beach District | West Palm Beach |
Florida | FTZ 136 | Canaveral Port Authority | Port Canaveral |
Florida | FTZ 166 | Vision Foreign-Trade Zone, Inc. | Miami |
Florida | FTZ 169 | Manatee County Port Authority | Port Manatee |
Florida | FTZ 180 | Wynwood Community Economic Development Corp. | Miami |
Florida | FTZ 193 | Pinellas County Economic Development | St. Petersburg |
Florida | FTZ 198 | Volusia County Foreign-Trade Zone | Daytona Beach |
Florida | FTZ 213 | Lee County Port Authority | Fort Myers |
Florida | FTZ 215 | Sebring Airport Authority | Port Manatee |
Florida | FTZ 218 | Treasure Coast Foreign Trade Zone, Inc. | Fort Pierce Station |
Florida | FTZ 241 | City of Fort Lauderdale | Port Everglades |
Florida | FTZ 249 | Pensacola-Escambia County Promotion & Development Commission | Pensacola |
Florida | FTZ 250 | Sanford Airport Authority | Sanford |
Florida | FTZ 281 | Miami-Dade County | Miami |
Florida | FTZ 292 | City of Leesburg | Leesburg |
Georgia | FTZ 26 | Georgia Foreign-Trade Zone, Inc. | Atlanta |
Georgia | FTZ 104 | World Trade Center Savannah, LLC | Savannah |
Georgia | FTZ 144 | Brunswick and Glynn County Development Authority | Brunswick |
Hawaii | FTZ 9 | State of Hawaii | Honolulu |
Idaho | FTZ 242 | County of Boundary | Eastport |
Idaho | FTZ 280 | Southwest Idaho Manufacturers’ Alliance | Boise |
Illinois | FTZ 22 | Illinois International Port District | Chicago |
Illinois | FTZ 31 | America’s Central Port District | St. Louis |
Illinois | FTZ 114 | Economic Development Council for Central Illinois | Peoria |
Illinois | FTZ 133 | Quad-City Foreign-Trade Zone, Inc. | Davenport / Moline / Rock Island |
Illinois | FTZ 146 | Bi-State Authority | Evansville |
Illinois | FTZ 176 | Greater Rockford Airport Authority | Rockford |
Illinois | FTZ 245 | Economic Development Corporation of Decatur & Macon County | Decatur |
Illinois | FTZ 271 | Jo-Carroll Foreign Trade Zone Board | Davenport / Moline / Rock Island |
Indiana | FTZ 72 | Indianapolis Airport Authority | Indianapolis |
Indiana | FTZ 125 | St. Joseph County Airport Authority | Chicago |
Indiana | FTZ 152 | Ports of Indiana | Chicago |
Indiana | FTZ 170 | Ports of Indiana | Louisville |
Indiana | FTZ 177 | Ports of Indiana | Evansville |
Indiana | FTZ 182 | City of Fort Wayne | Fort Wayne |
Iowa | FTZ 107 | The Iowa Foreign Trade Zone Corp. | Des Moines |
Iowa | FTZ 133 | Quad-City Foreign-Trade Zone, Inc. | Davenport / Moline / Rock Island |
Iowa | FTZ 175 | Cedar Rapids Airport Commission | Des Moines |
Iowa | FTZ 288 | Northwest Iowa Development Corp. | Sioux Falls |
Kansas | FTZ 17 | Greater Kansas City FTZ, Inc. | Kansas City |
Kansas | FTZ 161 | Board of Commissioners of Sedgwick County | Wichita |
Kentucky | FTZ 29 | Louisville & Jefferson County Riverport Authority | Louisville |
Kentucky | FTZ 47 | Greater Cincinnati FTZ, Inc. | Cincinnati |
Kentucky | FTZ 294 | Paducah-McCracken County Riverport Authority | Evansville |
Louisiana | FTZ 2 | Board of Commissioners of the Port of New Orleans | New Orleans |
Louisiana | FTZ 87 | Lake Charles Harbor & Terminal District | Lake Charles |
Louisiana | FTZ 124 | Port of South Louisiana | Gramercy |
Louisiana | FTZ 145 | Caddo-Bossier Parishes Port Commission | Shreveport |
Louisiana | FTZ 154 | Greater Baton Rouge Port Commission | Baton Rouge |
Louisiana | FTZ 261 | England Economic & Industrial Development District | Morgan City |
Louisiana | FTZ 279 | Houma-Terrebonne Airport Commission | Morgan City |
Louisiana | FTZ 291 | Cameron Parish Port, Harbor and Terminal District | Lake Charles |
Maine | FTZ 58 | City of Bangor | Bangor |
Maine | FTZ 179 | Madawaska Foreign Trade Zone Corp. | Madawaska |
Maine | FTZ 186 | City of Waterville | Belfast |
Maine | FTZ 263 | Lewiston-Auburn Economic Growth Council | Portland |
Maine | FTZ 282 | Midcoast Regional Redevelopment Authority | Portland |
Maryland | FTZ 63 | Prince George’s County Government | Washington, DC |
Maryland | FTZ 73 | Maryland Department of Transportation | Baltimore |
Maryland | FTZ 74 | City of Baltimore | Baltimore |
Maryland | FTZ 255 | Cascade Properties & Washington County Board of Commissioners | Baltimore |
Massachusetts | FTZ 27 | Massachusetts Port Authority | Boston |
Massachusetts | FTZ 28 | City of New Bedford | New Bedford |
Massachusetts | FTZ 201 | City of Holyoke | Springfield |
Michigan | FTZ 16 | Economic Development Corp. of Sault Ste. Marie | Sault Ste. Marie |
Michigan | FTZ 43 | City of Battle Creek | Battle Creek |
Michigan | FTZ 70 | Greater Detroit Foreign-Trade Zone, Inc. | Detroit |
Michigan | FTZ 140 | City of Flint | Saginaw / Bay City / Flint |
Michigan | FTZ 189 | KOM Foreign Trade Zone Authority | Grand Rapids |
Michigan | FTZ 210 | Economic Development Alliance of St. Clair County | Port Huron |
Michigan | FTZ 275 | Capital Region Airport Authority | Lansing |
Minnesota | FTZ 51 | Duluth Seaway Port Authority | Duluth |
Minnesota | FTZ 119 | Greater Metropolitan Area FTZ Commission | Minneapolis |
Minnesota | FTZ 259 | Koochiching Economic Development Authority | International Falls |
Mississippi | FTZ 92 | Mississippi Coast Foreign-Trade Zone, Inc. | Gulfport |
Mississippi | FTZ 158 | Greater Mississippi Foreign-Trade Zone, Inc. | Jackson |
Mississippi | FTZ 262 | Northern Mississippi FTZ, Inc. | Memphis |
Mississippi | FTZ 287 | Tunica County | Memphis |
Missouri | FTZ 15 | Greater Kansas City FTZ, Inc. | Kansas City |
Missouri | FTZ 102 | St. Louis County Port Authority | St. Louis |
Missouri | FTZ 225 | City of Springfield Airport Board | Springfield |
Montana | FTZ 88 | Great Falls International Airport Authority | Great Falls |
Montana | FTZ 187 | Northern Express Transportation, Inc. | Sweetgrass |
Montana | FTZ 274 | City and County of Butte-Silver Bow | Butte-Silver Bow |
Nebraska | FTZ 19 | Greater Omaha Chamber of Commerce | Omaha |
Nebraska | FTZ 59 | Lincoln Chamber of Commerce | Omaha |
Nevada | FTZ 89 | Las Vegas Global Economic Alliance | Las Vegas |
Nevada | FTZ 126 | Economic Development Authority of Western Nevada | Reno |
New Hampshire | FTZ 81 | Pease Development Authority | Portsmouth |
New Jersey | FTZ 44 | State of New Jersey | New York / Newark |
New Jersey | FTZ 49 | Port Authority of New York and New Jersey | New York / Newark |
New Jersey | FTZ 142 | South Jersey Port Corporation | Salem, New Jersey/Philadelphia |
New Jersey | FTZ 200 | County of Mercer | Philadelphia |
New Jersey | FTZ 235 | Township of Lakewood | Philadelphia |
New Mexico | FTZ 110 | City of Albuquerque Aviation Department | Albuquerque |
New Mexico | FTZ 197 | Board of County Commissioners of Dona Ana County | Santa Teresa |
New York | FTZ 1 | City of New York | New York / Newark |
New York | FTZ 23 | County of Erie | Buffalo |
New York | FTZ 34 | Niagara County Industrial Development Agency | Buffalo |
New York | FTZ 37 | County of Orange | New York / Newark |
New York | FTZ 52 | Suffolk County | John F. Kennedy International Airport |
New York | FTZ 54 | Clinton County Area Development Corp. | Champlain |
New York | FTZ 90 | County of Onondaga | Syracuse |
New York | FTZ 109 | Jefferson County Industrial Development Agency | Alexandria Bay |
New York | FTZ 118 | Ogdensburg Bridge and Port Authority | Ogdensburg |
New York | FTZ 121 | Capital District Regional Planning Commission | Albany |
New York | FTZ 141 | County of Monroe | Rochester |
New York | FTZ 172 | County of Oneida | Utica |
New York | FTZ 284 | Genesee Gateway Local Development Corp. | Rochester |
New York | FTZ 285 | Chenango County | Syracuse |
New York | FTZ 289 | Ontario County | Rochester |
New York | FTZ 290 | Cortland County | Syracuse |
North Carolina | FTZ 57 | Charlotte Regional Partnership, Inc. | Charlotte |
North Carolina | FTZ 93 | Triangle J Council of Governments | Raleigh / Durham |
North Carolina | FTZ 214 | North Carolina Department of Transportation | Morehead City / Beaufort |
North Carolina | FTZ 230 | Piedmont Triad Partnership | Winston-Salem |
North Dakota | FTZ 103 | Grand Forks Region Economic Development Corp. | Pembina |
North Dakota | FTZ 267 | Municipal Airport Authority of the City of Fargo | Fargo |
Ohio | FTZ 8 | Toledo-Lucas County Port Authority | Toledo / Sandusky |
Ohio | FTZ 40 | Cleveland Cuyahoga County Port Authority | Cleveland |
Ohio | FTZ 46 | Greater Cincinnati FTZ, Inc. | Cincinnati |
Ohio | FTZ 100 | Greater Dayton Foreign-Trade Zone, Inc. | Dayton |
Ohio | FTZ 101 | AMES Material Services, Inc. | Dayton |
Ohio | FTZ 138 | Columbus Regional Airport Authority | Columbus |
Ohio | FTZ 151 | Findlay/Hancock County Chamber of Commerce | Toledo / Sandusky |
Ohio | FTZ 181 | Northeast Ohio Trade & Economic Consortium | Cleveland |
Ohio | FTZ 270 | Lawrence County Port Authority | Charleston |
Oklahoma | FTZ 53 | City of Tulsa | Tulsa |
Oklahoma | FTZ 106 | Port Authority of the Greater Oklahoma City Area | Oklahoma City |
Oklahoma | FTZ 164 | Muskogee City-County Port Authority | Tulsa |
Oklahoma | FTZ 227 | Rural Enterprises of Oklahoma, Inc. | Dallas / Fort Worth |
Oregon | FTZ 45 | Port of Portland | Portland |
Oregon | FTZ 132 | International Port of Coos Bay Commission | Coos Bay |
Pennsylvania | FTZ 24 | Eastern Distribution Center, Inc. | Wilkes-Barre / Scranton |
Pennsylvania | FTZ 33 | Regional Industrial Development Corporation of Southwestern Pennsylvania | Pittsburgh |
Pennsylvania | FTZ 35 | Philadelphia Regional Port Authority | Philadelphia |
Pennsylvania | FTZ 147 | FTZ Corp. of Southern Pennsylvania | Harrisburg |
Pennsylvania | FTZ 247 | Erie-Western Pennsylvania Port Authority | Erie |
Pennsylvania | FTZ 254 | North Central Pennsylvania Regional Planning and Development Commission | Pittsburgh |
Pennsylvania | FTZ 272 | Lehigh Valley Economic Development Corp. | Lehigh Valley |
Pennsylvania | FTZ 295 | Pennsylvania Foreign Trade Zone Corp. | Pittsburgh |
Puerto Rico | FTZ 7 | Puerto Rico Industrial Development Corp. | Mayaguez |
Puerto Rico | FTZ 61 | Puerto Rico Trade and Export Co. | San Juan |
Puerto Rico | FTZ 163 | CODEZOL C.D. | Ponce |
Rhode Island | FTZ 105 | Rhode Island Economic Development Corp. | Providence |
South Carolina | FTZ 21 | South Carolina State Ports Authority | Charleston |
South Carolina | FTZ 38 | South Carolina State Ports Authority | Greenville / Spartanburg |
South Carolina | FTZ 127 | Richland-Lexington Airport District | Columbia |
South Dakota | FTZ 220 | Sioux Falls Development Foundation | Sioux Falls |
Tennessee | FTZ 77 | City of Memphis | Memphis |
Tennessee | FTZ 78 | Metropolitan Government of Nashville and Davidson County | Nashville |
Tennessee | FTZ 138 | Chattanooga Chamber Foundation | Chattanooga |
Tennessee | FTZ 148 | Industrial Development Board of Blount County and the Cities of Alcoa and Maryville | Knoxville |
Tennessee | FTZ 204 | Tri-Cities Airport Authority | Tri-Cities Airport |
Tennessee | FTZ 223 | Memphis International Trade Development Corp. | Memphis |
Tennessee | FTZ 78 | Metropolitan Government of Nashville & Davidson County | Shelbyville |
Tennessee | FTZ 283 | Northwest Tennessee Regional Port Authority | Memphis |
Texas | FTZ 12 | McAllen Foreign Trade Zone | McAllen / Hidalgo County |
Texas | FTZ 36 | Board of Trustees of the Galveston Wharves | Houston |
Texas | FTZ 39 | Dallas/Fort Worth International Airport Board | Dallas / Fort Worth |
Texas | FTZ 62 | Brownsville Navigation District | Brownsville / Los Indios |
Texas | FTZ 68 | City of El Paso | El Paso |
Texas | FTZ 80 | City of San Antonio Economic Development Dept. | San Antonio |
Texas | FTZ 84 | Port of Houston Authority | Houston |
Texas | FTZ 94 | City of Laredo | Laredo |
Texas | FTZ 95 | Starr County Industrial Foundation | Rio Grande City |
Texas | FTZ 96 | City of Eagle Pass | Eagle Pass |
Texas | FTZ 113 | Ellis County Trade Zone Corp. | Dallas / Fort Worth |
Texas | FTZ 115 | Foreign-Trade Zone of Southeast Texas, Inc. | Port Arthur |
Texas | FTZ 116 | Foreign-Trade Zone of Southeast Texas, Inc. | Port Arthur |
Texas | FTZ 117 | Foreign-Trade Zone of Southeast Texas, Inc. | Port Arthur |
Texas | FTZ 122 | Port of Corpus Christi Authority | Corpus Christi |
Texas | FTZ 149 | Port Freeport | Freeport |
Texas | FTZ 150 | Westport Economic Development Corp. | El Paso |
Texas | FTZ 155 | Calhoun-Victoria Foreign-Trade Zone, Inc. | Port Lavaca / Port Comfort |
Texas | FTZ 156 | City of Weslaco | Progreso |
Texas | FTZ 165 | City of Midland | Midland |
Texas | FTZ 168 | Metroplex International Trade | Dallas / Fort Worth |
Texas | FTZ 171 | Liberty County Economic Development Corp. | Houston |
Texas | FTZ 183 | Foreign Trade Zone of Central Texas, Inc. | Austin |
Texas | FTZ 196 | Alliance Corridor, Inc. | Alliance Airport |
Texas | FTZ 199 | Texas City Foreign-Trade Zone Corp. | Houston |
Texas | FTZ 234 | Gregg County | Shreveport / Bossier City |
Texas | FTZ 246 | City of Waco | Dallas / Fort Worth |
Texas | FTZ 252 | City of Amarillo | Amarillo |
Texas | FTZ 258 | TexAmericas Center | Shreveport / Bossier City |
Texas | FTZ 260 | City of Lubbock | Lubbock |
Texas | FTZ 265 | City of Conroe | Houston |
Texas | FTZ 269 | Athens Economic Development Corp. | Dallas / Fort Worth |
Texas | FTZ 297 | City of Lufkin | Port Arthur / Beaumont |
Utah | FTZ 30 | Salt Lake City Corp. | Salt Lake City |
Vermont | FTZ 55 | Greater Burlington Industrial Corp. | Burlington International Airport |
Vermont | FTZ 268 | Brattleboro Foreign-Trade Zone LLC | Springfield |
Vermont | FTZ 286 | Northeastern Vermont Development Association | Derby Line |
Virginia | FTZ 20 | Virginia Port Authority | Norfolk / Newport News |
Virginia | FTZ 137 | Washington Dulles Foreign-Trade Zone | Washington Dulles International Airport |
Virginia | FTZ 185 | County of Culpeper | Front Royal |
Virginia | FTZ 207 | Capital Region Airport Commission | Richmond / Petersburg |
Virginia | FTZ 238 | New River Valley Economic Development Alliance, Inc. | New River Valley Airport |
Washington | FTZ 5 | Port of Seattle Commission | Puget Sound |
Washington | FTZ 85 | Port of Everett | Puget Sound |
Washington | FTZ 86 | Port of Tacoma | Puget Sound |
Washington | FTZ 120 | Cowlitz Economic Development Council | Longview |
Washington | FTZ 128 | Lummi Indian Business Council | Puget Sound |
Washington | FTZ 129 | Port of Bellingham | Blaine |
Washington | FTZ 173 | Port of Grays Harbor | Aberdeen |
Washington | FTZ 203 | Moses Lake Public Corp. | Port of Moses Lake |
Washington | FTZ 212 | Puyallup Tribal Foreign-Trade Zone Corp. | Puget Sound |
Washington | FTZ 216 | Port of Olympia | Puget Sound |
Washington | FTZ 224 | Spokane Airport Board | Spokane |
Washington | FTZ 296 | Port of Vancouver USA | Portland |
West Virginia | FTZ 229 | West Virginia Economic Development Authority | Charleston |
West Virginia | FTZ 240 | West Virginia Economic Development Authority | Front Royal |
Wisconsin | FTZ 41 | Port of Milwaukee | Milwaukee |
Wisconsin | FTZ 167 | Brown County | Green Bay |
Wisconsin | FTZ 266 | Dane County | Milwaukee |
Wyoming | FTZ 157 | Natrona County International Airport | Natrona County Airport |
A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and policy that taxes foreign products to encourage or safeguard domestic industry. Protective tariffs are among the most widely used instruments of protectionism, along with import quotas and export quotas and other non-tariff barriers to trade.
A free-trade zone (FTZ) is a class of special economic zone. It is a geographic area where goods may be imported, stored, handled, manufactured, or reconfigured and re-exported under specific customs regulation and generally not subject to customs duty. Free trade zones are generally organized around major seaports, international airports, and national frontiers—areas with many geographic advantages for trade.
An export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is an exporter; the foreign buyers is an importer. Services that figure in international trade include financial, accounting and other professional services, tourism, education as well as intellectual property rights.
Non-tariff barriers to trade are trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs. Such barriers are subject to controversy and debate, as they may comply with international rules on trade yet serve protectionist purposes.
A common external tariff(CET) must be introduced when a group of countries forms a customs union. The same customs duties, import quotas, preferences or other non-tariff barriers to trade apply to all goods entering the area, regardless of which country within the area they are entering. It is designed to end re-exportation; but it may also inhibit imports from countries outside the customs union and thereby diminish consumer choice and support protectionism of industries based within the customs union. The common external tariff is a mild form of economic union but may lead to further types of economic integration. In addition to having the same customs duties, the countries may have other common trade policies, such as having the same quotas, preferences or other non-tariff trade regulations apply to all goods entering the area, regardless of which country, within the area, they are entering.
In international trade, market access refers to a company's ability to enter a foreign market by selling its goods and services in another country. Market access is not the same as free trade, because market access is normally subject to conditions or requirements, whereas under ideal free trade conditions goods and services can circulate across borders without any barriers to trade. Expanding market access is therefore often a more achievable goal of trade negotiations than achieving free trade.
Tariffs have historically served a key role in the trade policy of the United States. Their purpose was to generate revenue for the federal government and to allow for import substitution industrialization by acting as a protective barrier around infant industries. They also aimed to reduce the trade deficit and the pressure of foreign competition. Tariffs were one of the pillars of the American System that allowed the rapid development and industrialization of the United States.
A Certificate of Origin or Declaration of Origin is a document widely used in international trade transactions which attests that the product listed therein has met certain criteria to be considered as originating in a particular country. A certificate of origin / declaration of origin is generally prepared and completed by the exporter or the manufacturer, and may be subject to official certification by an authorized third party. It is often submitted to a customs authority of the importing country to justify the product's eligibility for entry and/or its entitlement to preferential treatment. Guidelines for issuance of Certificates of Origin by chambers of commerce globally are issued by the International Chamber of Commerce.
The ATA Carnet, often referred to as the "Passport for goods", is an international customs document that permits the tax-free and duty-free temporary export and import of nonperishable goods for up to one year. It consists of unified customs declaration forms which are prepared ready to use at every border crossing point. It is a globally accepted guarantee for customs duties and taxes which can replace the security deposit required by each customs authority. It can be used in multiple countries in multiple trips up to its one-year validity. The acronym ATA is a combination of French and English terms "Admission Temporaire/Temporary Admission". The ATA carnet is now the document most widely used by the business community for international operations involving temporary admission of goods.
Port Alberta is a joint venture between Edmonton Global and Edmonton International Airport (EIA) based in the Edmonton Metropolitan Region in Alberta, Canada. Port Alberta provides transportation, logistics and supply chain solutions to connect Alberta's economy to worldwide markets. Its office is located in Edmonton.
Rules of origin are the rules to attribute a country of origin to a product in order to determine its "economic nationality". The need to establish rules of origin stems from the fact that the implementation of trade policy measures, such as tariffs, quotas, trade remedies, in various cases, depends on the country of origin of the product at hand.
Trade is a key factor of the economy of China. In the three decades following the dump of the Communist Chinese state in 1949, China's trade institutions at first developed into a partially modern but somewhat inefficient system. The drive to modernize the economy that began in 1978 required a sharp acceleration in commodity flows and greatly improved efficiency in economic transactions. In the ensuing years economic reforms were adopted by the government to develop a socialist market economy. This type of economy combined central planning with market mechanisms. The changes resulted in the decentralization and expansion of domestic and foreign trade institutions, as well as a greatly enlarged role for free market in the distribution of goods, and a prominent role for foreign trade and investment in economic development.
Santacruz Electronics Export Processing Zone (SEEPZ) is a Special Economic Zone in Mumbai, India. Situated in the Andheri East area, it is subjected to liberal economic laws as compared to the rest of India to promote rapid economic growth using tax and business incentives and attract foreign investment and technology. Seepz was created in 1973 and was seen as export processing zone. Since then many other SEZ's have been created in rest of India. SEEPZ mainly houses electronic hardware manufacturing companies, software companies, and jewelry exporters of India. More than 40 percent of India's total jewelry exports ($2,222.31 million) out of $5,210.69 million during year 2006-2007 came from units within SEEPZ.
Qualifying industrial zones (QIZs) are industrial parks that house manufacturing operations in Jordan and Egypt. The QIZ program was introduced in 1996 by the U.S. Congress to stimulate regional economic cooperation. Goods produced in QIZ-designated areas in Egypt, Jordan and the Palestinian territories can directly access U.S. markets without tariff or quota restrictions, subject to certain conditions. To qualify, goods produced in these zones must contain a small portion of Israeli input. In addition, a minimum 35% value to the goods must be added to the finished product. The idea was first proposed by Jordanian businessman Omar Salah in 1994.
Foreign trade of the United States comprises the international imports and exports of the United States. The country is among the top three global importers and exporters.
The United States imposes tariffs on imports of goods. The duty is levied at the time of import and is paid by the importer of record. Customs duties vary by country of origin and product. Goods from many countries are exempt from duty under various trade agreements. Certain types of goods are exempt from duty regardless of source. Customs rules differ from other import restrictions. Failure to properly comply with customs rules can result in seizure of goods and criminal penalties against involved parties. The United States Customs and Border Protection (CBP) enforces customs rules.
Shanghai Free-Trade Zone, officially China (Shanghai) Pilot Free-Trade Zone, is a free-trade zone in Shanghai, China. On 22 August 2013, the State Council approved the establishment of the zone. Officially launched on 29 September 2013 with the backing of Chinese Premier Li Keqiang, it is the first free-trade zone in mainland China and covers an area of 240.2 square kilometres (92.7 sq mi). Shanghai FTZ integrates four existing bonded zones in the district of Pudong—Waigaoqiao Free Trade Zone, Waigaoqiao Free Trade Logistics Park, Yangshan Free Trade Port Area and Pudong Airport Comprehensive Free Trade Zone.
Article I, § 10, clause 2 of the United States Constitution, known as the Import-Export Clause, prevents the states, without the consent of Congress, from imposing tariffs on imports and exports above what is necessary for their inspection laws and secures for the federal government the revenues from all tariffs on imports and exports. Several nineteenth century Supreme Court cases applied this clause to duties and imposts on interstate imports and exports. In 1869, the United States Supreme Court ruled that the Import-Export Clause only applied to imports and exports with foreign nations and did not apply to imports and exports with other states, although this interpretation has been questioned by modern legal scholars.
The accession of the city state of Hamburg to the German Customs Union, commonly known as Zollverein, in 1888 was the culmination of a project for the economic and monetary union of Germany, stretching back to 1819. In that year Schwarzburg-Sondershausen joined Prussia’s internal customs union, the first other state to do so and the first of many to follow.