YouTube Video: Fundamentals of Using a Foreign Trade Zone
Located in Windsor Locks adjacent to Bradley International Airport, Foreign Trade Zone #71 (FTZ#71) was established in 1981. In 2015, it was authorized by the U.S. Foreign Trade Zone Board to expand benefits to the five northern counties in CT. This includes Hartford, Litchfield, Middlesex, Tolland, and Windham counties, making all five eligible for FTZ access.
This allows importers and exporters access to the advantages of operating on a site within the U.S. where foreign and domestic merchandise are considered as not being within international commerce rather than U.S. Customs territory. This means that foreign or domestic merchandise may enter the trade zone without a formal Customs entry and without payment of duties or excise taxes.
Operating within a foreign-trade zone offers the following duty and tax relief:
- If the final product is exported from the U.S., U.S. Customs or excise tax is paid.
- If the final product is imported into the U.S., U.S. Customs duty and excise taxes are due at the time of transfer from the trade zone only on the product itself (or its imported parts, whichever is lower).
Locating your operation in a trade zone offers many advantages to manufacturers, processors, importers and exporters. In Foreign Trade Zone #71 you can:
- Store goods free of duty, tax or bond.
- Avoid quotas when you manufacture, repackage, process, assemble, test, clean, repair and relabel goods for re-export.
- Apply the “Made in U.S.A.” label if the value added in the trade zone is over 50%
- Avoid duties and quotas on materials lost in the manufacturing process.
- Inspect goods and all papers, licenses, and permits before paying duties.
For more information about the FTZ, contact: