The Foreign-Trade Zone program was created in 1934 by Congress as an incentive to encourage companies to keep investment and jobs in the United States and not move production offshore. The program removes certain costs and barriers that do not exist in foreign locations.
Located in FTZ #181, ASW’s Akron/Mogadore operations are strategically located to quickly access over 60% of the U.S. population and more than 50% of Canada’s. A partnership with ASW offers foreign and domestic companies an opportunity to defer, reduce, or eliminate duties and tariffs on imports.
Benefits:
- Duty Deferral: Customs duties and federal excise tax are deferred on imports until they enter U.S. Customs territory for consumption.
- Duty Exemption: Re-exports do not incur duties or quota charges; there are no duties on scrap, waste, or damaged or defective parts; merchandise can be transported between FTZ's duty free.
- Duty Reduction/Inverted Tariff Reliief (needs FTZ Board authorization): When zone production results in a finished product that has a U.S. Harmonized Tariff rate lower than the rates on foreign components (inverted tariff), the finished products may be eligible to be entered into U.S. Customs territory for consumption at the lower rate.
- Merchandise Processing Fee (MPF) Reduction: MPF is only paid on goods entering U.S. Customs territory. Zone users can file one entry for all goods shipped from an FTZ in a consecutive 7-day period.
- Reduced Insurance Premiums: Insurance companies might be willing to offer lower premiums on goods stored in FTZ's because of the strict security measures they are subject to by U.S. Customs.
- Logistical Benefits: Streamlined customs procedures may be available.
- Other Benefits: Exemption from state/local inventory taxes on domestic and foreign goods held for export