Manufacturers in New England have a unique opportunity to mitigate the impact of tariff increases –and avoid passing their cost on to their customers –by implementing Foreign Trade Zone (FTZ) procedures.
A Foreign Trade Zone can be identified simply as your manufacturing facility, an industrial park, or other geographical body and does not have to be located at a coastal port. Foreign material moved into an FTZ is never dutiable (i.e. tariffs never assessed) until it leaves the FTZ and enters the “Customs Territory.”
According to the 2017 annual Foreign Trade Zone Report to Congress, some 3,200 businesses that employed more than 45,000 people leveraged the value and benefits of FTZs.
If your company is being impacted by tariffs, you should explore establishing a Foreign Trade Zone to reduce or eliminate the government’s ability to collect tariffs on imported materials.
For more info, download the PDF.