Companies are moving to FTZs in record numbers. New products with new duties are arriving on the scene every day. Also, FTZs offer protection from tariff and non-tariff restrictions. Country of origin marking, defects and damage, quotas and production waste are a few examples of non-tariff considerations. Utimately, companies become involved in FTZs due to dramatic cost savings.
Many companies are excellent subzone candidates.
Products moving through U.S. FTZs include electronics, computers, petroleum, pharmaceuticals, food products, office equipment, sporting goods, manufacturing components and more. Manufacturers, distributors and suppliers are all candidates for FTZ subzones. General Electric now manufactures refrigerators, stoves, dishwashers, washing machnes and clothes dryers in an FTZ Subzone. This helps GE keep prices down and be more competitive in both U.S. and foreign markets. Hewlett Packard, trying to stay price competitive in the computer and electronics industry, operates their manufacturing facilities in FTZ subzones.