Wednesday, October 22, 2014

Foreign Trade Zone Benefits

Container ship entering port
A Foreign Trade Zone (FTZ) can be a game changer for a company who manufactures and imports its products into the Port of Los Angeles, or any company near a port operation.  There are significant benefits to be gained by taking advantage of an FTZ.

Some of the main benefits include:

·         Duty Deferral on Product. Inventory is brought into the Foreign Trade Zone and held, without duties and taxes being assessed, until the product leaves the FTZ - presumably to be fulfilled as a paid order to a customer.

·         Port Fees Reduction. For importers that are bringing in more than 1 container per week, there can be significant reductions in the port fees by utilizing a Foreign Trade Zone.

·         Duty Elimination on Product. Inventory re-exported or destroyed without ever leaving the Foreign Trade Zone does not ever get taxed as a US import.

·         Speed to Market. Product destined for the Foreign Trade Zone bypasses customs delays in the port because it will clear customs in the FTZ, thereby getting product available to sell sooner.

Using a Foreign Trade Zone helps to more consistently align the cost of your product with the revenue event, thus impacting both profitability and cash flow.

Vision Consumer Products Fulfillment has decades of experience and industry expertise in consumer products fulfillment services.  No matter who your customer is, we treat your customer as our own.  We know what makes a raving fan out of an individual customer, as well as what makes a business partner trust you with their business.  Call or email us to learn how.  We’re certain we’ll be the best fulfillment warehouse partner you have ever had!

Vision Consumer Products Fulfillment
Fulfillment Warehouse

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