Foreign-Trade Zone (FTZ) Services
Minimize or Eliminate Costly Duties and Fees with Our Easy-to-Manage FTZ Program
International trade growth and the increasing number of customs and compliance audits are pushing companies to develop better processes for managing global trade complexities. As part of this effort, organizations across all industries are using Foreign Trade Zones (FTZs) to expand their operations outside of their home countries; reduce taxes and tariffs; gain a foothold in the international market; and eliminate some of the duties associated with global trade.
Defined as geographic areas where goods may be landed, handled, manufactured or reconfigured, and then re-exported with less complex intervention of the customs authorities, FTZs allow manufacturers, distributors, importers, and other entities to defer, reduce, or even completely eliminate duties and fees on imported goods.
Using FTZs presents new challenges that companies aren’t always prepared to manage. For example, these processes require good integration and communication among multiple government agencies, customs brokers, carriers, and trading partners.
We take the time and hassle out of the FTZ process. DB Schenker helps you manage your import/export activities in a compliant and confident manner. Our FTZ services will help you:
- Gain a competitive edge in applying for and implementing an FTZ program
- Minimize or eliminate costly duties and fees associated with the standard import process
- Leverage the relationships we’ve already formed with officials in the field
- Optimize and implement FTZ-related savings
- Free up your internal resources to focus on more important matters
Additional FTZ Services: DB Schenker’s FTZ services include establishment of General Purpose Zone (GPZ) operational capabilities in our own facilities for our customers’ use; FTZ setup assistance; or third-party administration services. Our complete FTZ solution includes:
- An assessment of the appropriate services and corresponding operational needs based on a feasibility assessment that determines the appropriate services and corresponding operational requirements.
- Assistance with FTZ application
- Assistance with Customs Activation and the corresponding implementation
- An FTZ Procedures Manual and required documentation for activation
- Assistance in selection and implementation of an inventory control system and recordkeeping system (ICRS)
- Operational services based on recommended resources
In return, you can experience minimized fees due to inverted product classifications, longer duties payable time frames, less time spent on the administrative process, elimination of duty through immediate product export, decreased customs processing fees, and a more efficient end-to-end supply chain.
If your company is facing high effective duty rates, experiencing slow inventory turns, re-exporting assembled and/or finished goods or service parts, and/or importing goods for distribution in the U.S., then FTZs may help you streamline your business and run more profitably.
For more information about how DB Schenker can help you establish your own FTZ program, and to see why more than 25,000 companies trust us with their shipments each year, please contact us today.