What is a Foreign Trade Zone?
Foreign Trade Zones are free-trade-zones under U.S. Customs and Border Protection supervision. Merchandise can be brought into the Zone via air, rail, or freight truck and importers can examine and fix any issues there may be, before it enters U.S. Customs.
Where are Foreign Trade Zones Located?
Although there are FTZs located throughout the nation, they are most common near high volume ports. Murphy operates a Zone within the Murphy International Logistics Center and assists anywhere from 100 to 250 clients annually.
The MILC works closely with government departments to ensure that the proper actions are taken and product is safely imported and exported. Department of Homeland Security
- Department of Agriculture
- Food and Drug Administration
- Bureau of Alcohol, Tobacco and Firearms,
- Environmental Protection Agency.
- Department of Natural Resources
Large companies can also take advantage and set up a FTZ in their own facility. This allows them to quickly move product into the zone and have it available ASAP when they need it for import or export.
Who can use a Foreign Trade Zone?
Companies of all sizes from startups to Fortune 500’s can use FTZs when importing and exporting merchandise, provided that they fill out the required paperwork.
Although many people can be intimidated with the paperwork that goes along with importing and exporting through a Foreign Trade Zone, Murphy is available to help. Our team walks through the paperwork required and ensures that your merchandise is handled correctly every time. Contact us to learn more.
What are the Benefits to a Foreign Trade Zone?
FTZs offer clients many benefits, aiding the trade of products throughout the world. Merchandise is not subject to tax, while in the FTZ and goods can be exported without duty or excise tax applied. Because tax rates may change while product is in the FTZ, taxes applied can be paid when the merchandise is placed into the FTZ or when it is exported, whichever is to the supplier’s advantage.
Foreign Trade Zones are a big advantage for companies looking to participate in global trade, they allow clients to take corrective actions, find advantages and ensure the safety of their products throughout the process.
As one of the few FTZs in the state of Minnesota as well as the Midwest, Murphy offers a valuable service to clients looking for an edge when importing and exporting merchandise.
If you are looking for more information about Foreign Trade Zones please view the Murphy International Logistics Center webpage. Be sure to follow our weekly blog to learn more about Murphy and the logistics industry.
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