Foreign Trade Zone
South Jersey Port Corporation is the grantee of FTZ No. 142 with two permanent locations in southern New Jersey; one at the Port of Salem and the other at the Millville Airport. Both are general purpose zones with indoor and outdoor storage space for use by a number of companies.
A Foreign Trade Zone (FTZ) is a duty-free, quota-free, secured area in a designated customs “port of entry” considered outside U.S. Customs territory. Within a zone, foreign goods can be brought into the country without formal customs entry for warehousing, assembly, manufacturing, display, destruction, or other processing. Duty payments can be deferred, reduced or eliminated within an FTZ.
An FTZ allows businesses to:
- Import and store goods duty free indefinitely
- Process imported goods to lower your costs
- Import for eventual re-export goods that are subject to a quota or a high duty rate
- Destroy or re-export defective goods and waste materials without paying duty on them
- Hold goods above quota levels until the next quota period
- FTZs are divided into general-purpose zones and subzones. FTZ subzones typically involve a single firm’s site when a specific activity cannot easily be accomplished elsewhere.
FTZs are divided into general-purpose zones and subzones. FTZ subzones typically involve a single firm’s site when a specific activity cannot easily be accomplished elsewhere. Subzones can also be established for individual companies, as long as the subzones conform with FTZ regulations set forth in the Foreign Trade Zones Act. Companies that wish to establish a subzone must submit, together with the SJPC, an application to the FTZ board in Washington, D. C.
Savings on duty and other costs can be significant if imports are modified within either type of zone. Call us to find out how our FTZ can help your bottom line.