What’s a Foreign Trade Zone?
• No duty is ever paid on re-exported merchandise from a zone.
• If the merchandise is sold domestically, no duty is paid until it leaves the zone.
• Generally, duty on waste of scrap is eliminated or reduced.
• If foreign merchandise is manufactured into product which has a lower duty rate, then the lower duty rate applies on the foreign content when the duty is tendered. No duty applies to domestic content.
• Both foreign and domestic merchandise in a zone may be stored, repacked, manipulated, manufactured, processed, destroyed, or otherwise altered or changed.
• Generally, when foreign merchandise is sold to the U.S. government, no duty is charged.
