FOREIGN-TRADE ZONE


SAMPLE CASE STUDIES OF USING FTZ BENEFITS

Weekly Entry Cost Savings

The Weekly Entry Process available to companies operating within the FTZ can result in savings of up to 85 percent on entry and processing fees. Entry and Merchandise Processing Fees can be paid weekly, rather than daily, saving time and brokerage fees, as well.

Example:

Annual Duty savings from assembly in FTZ:$77,600
52 entries per year at $485:$25,220
Annual savings:$52,380

Savings on duties through assembly in FTZ

A company that sells first aid kits imports most of the kit components from Asia – items like bandages, gauze pads, cold packs, tape, scissors, tweezers, rubber gloves, metal cases, etc. The kits are assembled in the U.S. Most of the components have import duty rates of two to three percent. The duty rate for the metal boxes is 17 percent, but the import duty rate for complete first aid kits is zero.

Example:

Annual value of kit components:$10M
Averaged duty rate of components:10%
Annual Duty savings from assembly in FTZ:$1M
For more information, please contact Dr. James Collard at 405-275-3121 or jcollard@potawatomi.org, or contact Courtney Palmer at courtney.palmer@potawatomi.org.
Citizen Potawatomi Nation is a federally-recognized government and has inherent sovereign status recognized by treaty and federal law.

© 2017 Iron Horse Industrial Park. All rights reserved.