What is a Foreign Trade Zone in Texas?
Texas leads the nation with 32 foreign trade zones (FTZs), more than any other state. FTZs are the domestic equivalents of ‘free-trade zones’. FTZs promote the international competitiveness of U.S.-based businesses because FTZ activities primarily involve domestic operations combining foreign and domestic inputs.
How many foreign trade zones are in Texas?
FTZs encourage investment in the U.S. and the creation of American jobs by allowing U.S. businesses to operate with equivalent customs treatment to business conducted off-shore. Business using FTZs can reduce customs duties and fees, and achieve logistics benefits for the import and export of goods.
How did foreign trade zones affect the Texas economy?
Businesses operating in FTZs can reduce duty and tax costs, as well as streamline their production and processes. The primary manufacturing industries benefiting from FTZs are oil refining, vehicles/automotive parts, consumer electronics, and pharmaceuticals.
Where are foreign trade zones?
Foreign-Trade Zones (FTZ) are secure areas under U.S. Customs and Border Protection (CBP) supervision that are generally considered outside CBP territory upon activation. Located in or near CBP ports of entry, they are the United States’ version of what are known internationally as free-trade zones.
How does a foreign trade zone work?
Foreign-Trade Zones allow companies to bring items onto US soil without paying the duty tax, allowing them to store these goods free of tariff charges, or use parts to manufacture a finished product that can then be exported without the US import/export surcharges.
What is an FTZ warehouse?
A free trade zone (FTZ) warehouse is a facility in an area the U.S. government classifies as being outside of U.S. customs territory, despite a location within the borders of the United States. FTZs are usually located near Customs and Border Protection ports of entry.
How do foreign-trade zones work?
What is FTZ warehouse?