Foreign-Trade Zones (FTZs) were created by the United States Government to provide special customs procedures to US businesses engaged in international trade-related activities; primarily importing. Businesses benefit by receiving deferred, reduced or eliminated tariff/duty and/or entry fees which may be levied on merchandise (raw materials, component parts or finished goods) brought into the country and kept in an FTZ. While in this bonded and secured area, merchandise can be stored, manipulated/value added or destroyed. When the item leaves the Zone and enters the “US stream of commerce”, tariff/duty and entry fees must then be paid to the US Treasury via the US Customs and Border Protection. Companies exporting finished products that include imported inputs will pay no tariff/duty and entry fees at all.
The program can help businesses who import a significant amount of merchandise/materials by allowing them to defer immediate payment of tariff, duty and entry fees while allowing the items to be stored in their facility through use of the Alternative Site Framework (ASF). Our partner organization, the Pennsylvania Foreign-Trade Zone Corporation (PAFTZ) has received a “Grant of Authority” to establish and operate FTZ Number 295 for three counties (Cambria, Blair and Bedford) here in south-central Pennsylvania. PAFTZ is now able to sponsor companies wanting to take advantage of this cost savings program through an ASF arrangement. For more information, please contact us at (814) 475 – 2789 or email@example.com.