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.

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 the ability to bring such goods into the Zone and subsequently re-export them.
Duty Exemption
- No duties or quota charges on re-exports.
Inverted Tariff
- In situations where zone manufacturing results in a finished product that has a lower duty rate than the rates on foreign inputs, the finished products may be entered at the duty rate that applies to its condition as it leaves the zone.
Quality Control
- The FTZ may be used for quality control inspection to ensure that only products that meet specifications are imported. Substandard goods can be destroyed or returned before duty is paid.

Reduced Merchandise Processing Fee (MPF)
- MPF is 0.3464% of the Total Estimated Value (TEV) of the individual shipment. Being placed inside an FTZ, you get the privilege to file weekly entries with a minimum fee of $27.23 and a maximum fee of $528.33 per entry. Fewer entry filings can also reduce Brokerage fees.
Tax Benefits
- Foreign goods and domestic goods held for export are exempt from state/local inventory taxes. FTZ status may also make a site eligible for state/local benefits which are unrelated to the FTZ Act.
Increased Flexibility
- Just-in-time delivery, quotas, and reduced Customs delays.
Zone-to-zone Tranfer
- Be transferred under bond from one FTZ to another, possibly across the country. Duties are not owed until the merchandise is finally admitted into the U.S. Customs territory.
Shorter Delivery Times

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 (888) 396-6057 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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