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.
- 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 Fees
- Maximum payment of $485 filed weekly versus 0.21% of the total value of each shipment filed individually
- 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.
|Annual Duty savings from assembly in FTZ:||$77,600|
|52 entries per year at $485:||$25,220|
|Annual value of kit components:||$10M|
|Averaged duty rate of components:||10%|
|Annual Duty savings from assembly in FTZ:||$1M|
Courtney Palmer at email@example.com or Vedrana Milakovic firstname.lastname@example.org.
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