Foreign Trade Zone
#142
A Foreign Trade Zone (FTZ) is an area outside a designated U.S. Customs port of entry in which goods can be imported and stored duty- and quota-free. 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.
FTZs were created to provide special customs procedures to domestic firms engaged in international trade. Duty-free treatment is accorded to items that are processed in FTZs and then re-exported and duty is deferred on items until they leave the FTZ for sale in the US market, helping to offset customs advantages available to overseas producers.
South Jersey Port Corporation (SJPC) is proud to offer the advantages of Foreign Trade Zone #142 to business owners, giving them unbeatable advantages in business in international trade.
SJPC administers FTZ #142 in the Port of Salem, Millville Executive Airport, and Repauno Port and Rail Terminal – giving you the choice of not one, but three, great southern New Jersey sites to choose for your business. Located just minutes from one another, these facilities offer the advantages of operating within the eastern seaboard’s largest concentration of industrial, manufacturing, agricultural and commercial bases.
Foreign Trade Zones allow you to:
- Alter your products to meet federal and/or local requirements.
- Enjoy freer access to merchandise than bonded facilities allow
- Exhibit and sell merchandise and withdraw samples before paying duty
- Reduce insurance costs. Fire and theft insurance is less than the amount which would be necessary after duty. Goods may be insured for their value plus ocean freight costs.
- Re-label goods to conform to U.S. standards and withdraw samples to submit them to Customs for classification.
- Sample or inspect goods before formal entry, repair, salvage or discard substandard merchandise.
- Take advantage of larger, less frequent import shipments.
The Foreign Trade Zones program has become successful, in part, by consistently creating and retaining jobs and capital investment in the United States. Among the benefits the Foreign Trade Zones program offers domestic manufacturers and processors are:
- Relief from inverted tariffs
- Duty exemption on re-exports
- Duty elimination on waste, scrap, and yield loss
- Weekly entry savings
- Duty deferral
In addition to benefits to manufacturers and processors, the American public also benefits from successful FTZs. Among the public benefits are:
- Facilitation of international trade
- Promotion of international trade-related operations in competition with foreign plants through special customs procedures
- Encouragement and facilitation of exports
- Retention of domestic business activity
- Creation of domestic employment
When your merchandise leaves FTZ #142 and enters U.S. territory, you’ll pay Customs Duty only on the value of the product. Duty on materials that are manufactured, assembled, or processed within the Zone does not include labor costs, facility, or overhead expenses. There are many detailed advantages offered by FTZs.
SJPC can assist you to explore FTZ opportunities for your business. We can offer advice and counsel on how best your business can utilize an FTZ as well as act as liaison with the local U.S. Customs Service on your qualifications for participating in FTZ #142.
Learn More:
- Contact our Business Development Team:
Brendan Dugan
Assistant Executive Director/Business Development
Phone: 856-757-4993
Email: bdugan@southjerseyport.com