Essay on Foreign Trade Zones
In reading and going over chapter 17, I learned a lot but what most interesting is that the field that I work in which is a Logistic Company and we export and import shipments all day long. We do lots from holding goods and receiving and shipping out goods to the Georgia Port Authority and we do custom paperwork. So this was very enlightening to me and there was lots of information on the internet. I choose this article because of the homework assignment that was given to us and I think that it was great information to anyone learning about FTZs.
Foreign trade zones (FTZs) are designated sites where special customs procedures apply. Foreign trade zones in the …show more content…
WHAT ARE THE TYPES OF FTZs?
There are two types of foreign trade zones: general-purpose zones and sub zones. General-purpose zones are usually located in industrial parks or in seaport and airport complexes with facilities available for use by the general public. Subzones are sites sponsored by a general-purpose zone grantee on behalf of an individual firm or firms. Sub zones are single-purpose sites for operations that cannot be feasibly moved to, or accommodated in, a general-purpose zone (for instance, oil refining and automobile manufacturing). The Foreign-Trade Zones Board grants zones to qualified public and private entities (for instance, port authorities and city/county economic developers). In a general-purpose zone, the grantee usually has an operator to run the zone. Operators can sublet o tenants, called users. In a sub zone environment, the user and operator are usually the same.
WHAT ARE SOME ADVANTAGES OF USING FTZs? Duty Deferral
Customs duty and federal excise tax, if applicable, are paid only when merchandise is transferred from an FTZ to the