FOREIGN TRADE ZONE (FTZ)
Category: Other
The primary focus of an FTZ is to allow companies to reduce or eliminate duties and tariffs until such time as they are shipped to other markets. No duty is ever paid on re-exporting merchandise. If the merchandise is sold domestically, no duty is paid until it leaves the zone. Generally no duty is paid on waste or yield loss. Also, duty on scrap may be eliminated or reduced. If foreign merchandise is manufactured within an FTZ into a product with a lower duty rate, then the lower duty rate applies. Manufacturers must apply for sub-zone status to the U.S. Foreign Trade Zones Board. Local tax exemptions may be available from participating taxing entities of qualifying inventory. Learn More
Contacts
Port Houston
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Rina Lawrence
Port Houston
Manager, Economic Development
Phone: 713.670.2576
Fax: 713.835.5222
rlawrence@porthouston.com
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