Benefits of Expanded Foreign Trade Zone in St. Louis Region
Foreign-Trade Zones – What Now?
Foreign-Trade Zone status offers a variety of assistance to the businesses that participate. Your company may find substantial
cost savings from one or more of the below benefits of Foreign-Trade Zone designation:
Exports: A Foreign-Trade Zone-located company can generate significant savings by avoiding Customs duty payments, merchandise processing fees, and the significant expense and complexity of duty drawback on exported products.
Cash-Flow Savings: A company pays customs duties on imported items only as they leave the Foreign-Trade Zone and enter domestic territory.
Inverted Duty Savings: Imported parts may be subject to duty rates that are higher than the duty rates of the finished product. A company that operates in a Foreign-Trade Zone may choose to pay the Customs duty rate of the finished project in lieu of the rate that applies to imported parts/materials.
Weekly Entry: A company located in a Foreign-Trade Zone may choose to replace individual or daily Customs entries with one weekly entry. The weekly entry allows the company to reduce paperwork and save on Customs Merchandise Processing Fees and brokerage expenses.
Scrap/Waste/Obsolete/Surplus Losses: With proper accounting procedures, Foreign-Trade Zone status enables a company to avoid Customs duties on scrap, waste or obsolete parts.
Zone-to-Zone Transfers: Merchandise admitted to a Foreign-Trade Zone can be transferred in bond to another Foreign-Trade Zone without a Customs entry.
The recently-announced Alternative Site Framework pre-designates the entire geography of the City of St. Louis and St. Louis County as Foreign-Trade Zone ready. What does this mean to you? If your company is located within the City or County, the process for becoming Foreign-Trade Zone designated has been significantly streamlined. If you would like to learn more about Foreign Trade Zones, please contact Alison Zeidler at 314-615-1629 or firstname.lastname@example.org