Foreign Trade Zones (FTZs)

Understanding Foreign Trade Zones & their benefits

How FTZ are unlocking opportunities for International Businesses

Many businesses involved in international trade want to benefit from reduced duty payments and streamlined customs clearing and forwarding.

A foreign trade zone (FTZ) is a specified region within a country’s borders, enabling duty-free import, storage, processing, or assembly of goods. With Access World’s strategic location near ports and airports, where FTZs are typically located, our clients benefit from the competitive edge we provide in international trade.

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How does an FTZ work?

Foreign Trade Zones (FTZs) offer businesses significant advantages in handling goods. In these zones, imported goods can enter without immediate customs duties or taxes, allowing businesses to store, manipulate, or enhance their value.

To operate within an FTZ, companies must obtain an FTZ permit and comply with local laws, such as labor and environmental standards. This permit allows companies to import goods into the FTZ.

Customs duties and taxes within FTZs are deferred until goods leave for the domestic market, providing financial flexibility. This deferred tariff payment system is especially advantageous for goods destined for re-export, as these duties are often eliminated. FTZs also allow international businesses operational flexibility, enabling inventory management, testing, and other activities without immediate financial burdens. The streamlined logistics and distribution processes within FTZs contribute to supply chain optimization, resulting in overall cost savings.

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Main advantages of FTZ Warehousing

The importance of choosing the correct FTZ Warehousing partner

Maximizing the benefits of FTZ requires selecting the correct warehouse partner. A reliable partner should possess FTZ expertise, a deep understanding of customs procedures, and a commitment to delivering world-class warehousing services. Companies seeking a partner should prioritize a proven track record, dedication to customer service, and a network of strategic locations for streamlined supply chains.

When partnering with Access World, importers receive expert assistance throughout the importing process, starting from container or bulk material arrival at the port or breakbulk terminal. Access World manages customs clearance, legal weight, or heavy-weight drayage for terminal pickup and transporting products to an Access World warehouse. The process includes the unloading and storage of all imported products. When goods are ready for use, Access World ensures a smooth ride, whether by truck or rail, up to the last-mile delivery.

In summary

Foreign Trade Zones (FTZs) are pivotal tools for international businesses, offering reduced duty payments and streamlined customs processes. Access World, strategically located near ports and airports hosting FTZs, provides clients with a competitive edge in international trade. In an FTZ, imported goods enter without immediate customs duties, enabling businesses to store, enhance value, and defer tariff payments until leaving for the domestic market or being re-exported. FTZs, including Access World’s facilities, grant operational flexibility, optimize supply chains, and contribute significant cost savings, promoting international trade and attracting foreign investment.

Selecting the right FTZ warehousing partner is crucial for maximizing benefits. With its FTZ expertise, customs clearing and forwarding expertise, and commitment to top-tier warehousing, Access World ensures a seamless importing process. From container or bulk material arrival at the port to last-mile delivery, Access World provides expert assistance in customs clearance, drayage, unloading, storage, and transportation, offering a comprehensive solution for businesses engaging in international trade.

Contact Access World to learn how you can benefit from FTZ warehousing solutions.

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RE:PORT Case Studies

Discover how Access World handles various shipments over a wide range of different products and commodities, the challenges faced and how they were overcome with ingenuity and innovative thinking.

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