Goods may be manufactured in a FTZ except when specifically limited by law. Customs fees and taxes are due at the time the merchandise leaves the zone. If the merchandise is exported from the U.S., duties are eliminated. Products may then be exported or sent into U.S. Customs territory, capitalizing on favored tariff rates. Benefits of the Program Duty Deferral Duties are only paid once the merchandise enters U.S. Customs territory, which allows companies to maintain the cash flow necessary for operating needs.
Merchandise can remain in a FTZ for any length of time.
Duty Reduction Users of a FTZ can elect to pay duties on either the merchandise entering or the finished product, therefore allowing the user to chose a lower duty rate. When merchandise is exported from the FTZ, all duties are eliminated. Duties are generally eliminated on scrapped, wasted, and destroyed merchandise. This program was designed to stimulate economic growth and increase competition amoung nations for employment. Along with the benefits mentioned above, FTZ's now have a weekly entry procedure, which minimizes merchandise processing and brokers fees to only one per week.