Foreign Trade Zone
The City of Eagle Pass is the authorized grantee for Foreign Trade Zone No. 96 (FTZ 96) and operates under the Traditional Site Framework. Through the FTZ, a company can:
- Reduce or eliminate tariffs on foreign goods coming into the U.S.
- Defer duties on merchandise until it is ready to enter the U.S. market.
- Exempt duties on re-exports.
- Expedite transfers of goods among other FTZs.
- Eliminate duties on scrap or waste.
- Submit a weekly entry to reduce paperwork.
- Avoid duty drawback.
FTZ vs. Bonded Warehouse
While a Foreign Trade Zone (FTZ) can offer significant benefits and substantial savings to a company, we understand that the program may not be right for everyone. Many times, dependent on the operations that need to occur, a U.S. bonded warehouse may fulfill the needs of a company. At the same time, in other cases, an FTZ may bring considerable savings. To have a better understanding of which program is best to use, below are some of the significant differences between an FTZ and a bonded warehouse.
|Type||Foreign Trade Zone (FTZ)||Bonded Warehouse|
|Customs Entry||No entry required||Entry required to admit goods into warehouse|
|Permissible Cargo||Foreign and Domestic Goods||Foreign goods only|
|Duties||Only upon entry into the U.S. market||Owed prior to release of goods from the bonded warehouse|
|Inventory Tax||Foreign goods not taxed||All goods are taxed|
|Storage Period||Unlimited||May not exceed five years|
|Control of Goods||FTZ controls goods||CBP controls goods|
|Domestic Goods||May be admitted||May not be admitted|
|Permissible Activity||Clean, repack, sort, destroy, grade, label, assemble, manufacture, exhibit, and co-mingle with other freight (foreign and domestic)||Clean, repack, and sort under CBP supervision|
|Waste||Duty is only paid on items leaving the FTZ into U.S. market for consumption||Duty is due on all waste and/or damaged goods|