FOREIGN-TRADE ZONE

Iron Horse received its designation as a Foreign-Trade Zone in 2014 as a magnet site of the Port of Greater Oklahoma City’s Foreign-Trade Zone #106.

If you conduct international business, locating in a Foreign-Trade Zone will help you save money and take advantage of efficiencies in customs procedures. In addition to our strategic location in the geographic center of the United States, Iron Horse is ideal for businesses importing and warehousing, manufacturing or assembling with imported goods, as well as distribution centers.

READ MORE ABOUT FOREIGN-TRADE ZONE BENEFITS

Duty elimination on:

  • Manufacturing in the U.S. and selling domestically.
  • Utilizing pick-and-pack operations where the "set" has a lower duty rate than the individual pieces.
  • Previously Imported material, which is re-exported.
  • Rejected, scrapped, waste or return-to-vendor imported material.
  • Sales of imported materials or finished products containing imported components to companies operating in other U.S. Foreign-Trade Zones.
  • Selling to the government

Duty reduction on:

  • Duty deferral until merchandise is shipped from the Zone into customs territory.
  • Ability to hold most merchandise subject to quotas until the quota opens and/or ability to bring goods into the Foreign-Trade Zone and subsequently re-export them.
  • Increased flexibility with just-in-time delivery, quotas, and reduced customs delays.
  • Ability to hold merchandise in a Foreign-Trade Zone indefinitely.

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.

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

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,
Courtney Palmer at courtney.palmer@potawatomi.org or Vedrana Milakovic vedrana.milakovic@potawatomi.org.
Citizen Potawatomi Nation is a federally-recognized government and has inherent sovereign status recognized by treaty and federal law.
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