FOREIGN TRADE ZONE
International Airport is designated Foreign Trade Zone #165 and is the Grantee
being The City of Midland.
Distribution firms who import products or re-export
imported products can receive benefits from the FTZ program.
is a Foreign-Trade Zone?
"A foreign-trade zone is a restricted-access site,
in or adjacent to a Customs port of entry, operated pursuant to public
utility principles under the sponsorship of a corporation granted authority
by the Board and under supervision of the Customs Service." Regulations
of the Foreign-Trade Zones Board (19 CFR Part 400)
FTZs are treated, for the purposes of the tariff
laws and Customs entry procedures, as being outside the Customs Territory
of the United States. Under FTZ procedures, foreign and domestic merchandise
may be admitted into zones for operations such as; storage, exhibition,
assembly, manufacture and processing, without being subject to formal
Customs entry procedures (the payment of Customs duties or the payment
of federal excise taxes).
When merchandise is removed from a foreign-trade zone,
Customs duties may be eliminated if the goods are then exported from the
United States. If the merchandise is formally entered into U.S. commerce,
Customs duties and excise taxes are due at the time of transfer from the
For merchandise that is manufactured in a foreign-trade
zone with permission of the Foreign-Trade Zones Board, the importer may
elect to pay Customs duty at the lower rate of either the finished product
or its foreign components. In this manner, use of a foreign-trade zone
can result in the reduction of Customs duty owed by companies that manufacture
products in an FTZ.
For more information go to: www.naftz.org