The purpose of the Foreign Trade Zone (FTZ) is to facilitate trade and increase the global competitiveness of United States-based companies. There are several FTZ subzones within the City of Anderson. The FTZ subzones can be re-designated to accommodate project development needs. All other locations outside of the established subzones can also be designated as a new FTZ.
Legally, a FTZ is an area within the United States that the government considers outside the country, or at least, outside of the United States customs territory. Certain types of merchandise can be imported into a FTZ without going through formal customs entry procedures or paying import duties.
Some of the benefits of operating within a Foreign Trade Zone are:
Imports may be admitted and held in a foreign trade zone without paying U.S. Customs duties.
Foreign Trade Zone users can pay the duty rate on component material or merchandise produced from component material, whichever is lower.
Customs duties are not paid on merchandise exported from a zone.
Duties are reduced or eliminated on materials subject to defect, damage, obsolescence, waste, or scrap.
Merchandise may be exported and returned to an FTZ without duty payment.
Spare parts may be stored, returned, or destroyed without duty payment.
Delays in customs clearances and duty drawback are reduced or eliminated.
Duties are not owed on labor, overhead, or profit attributed to FTZ production operations.
Quality control inspections can identify sub-standard goods to be destroyed or returned without duty payment.
No duty is owed on in-bond, zone-to-zone transfer of FTZ merchandise.