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 |
Manufacturing | Permitted | Not permitted |
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 |