Inverted tariffs and duty deferral are the two chief benefits for FTZ-based companies. Commerce's 1992 FTZ regulations specify that zone benefits cannot be used to circumvent U.S. trade laws. Customs collects regular duties. Customs is responsible for the correct classification, and the collection of commercially significant regular duties, on steel mill products. Customs enforcement of other laws.
Circumvention attempts still of concern.
In an era of FTAs, the need for effective enforcement by the U.S. Customs Service is important. Enforcement, under the umbrella of Customs' Office of Strategic Trade, has become more focused, and AISI works with this office on a continuing basis to help ensure strong vigilance and improved compliance. Funding for Customs is a dollar especially well spent. Steel operations in FTZs are directly related to sales. FTZ-based manufacturers use a lot of U.S. steel.