Foreign Trade Zone 289

FOREIGN TRADE ZONE 289 (FTZ 289)

Ontario County Economic Development submitted an Alternative Site Framework application for FTZ Grantee status on behalf of Ontario County. Ontario County was awarded FTZ 289 Grantee status by the U.S. Department of Commerce. This authority covers Ontario, Wayne, Seneca, Yates, and Livingston Counties.

WHAT IS A FOREIGN TRADE ZONE?

A Foreign-Trade Zone is a site within 60 miles and/or 90 minutes driving time from a port of entry (our Port is the Rochester Airport). The site is designated for the import and export of goods. While the site is located within the United States, goods stored or produced there are considered to be “outside the commerce of the U.S.” This allows for businesses to import and export goods on U.S. soil with the same benefits as being outside the US—therefore avoiding expensive customs duties/tariffs. Businesses that operate in an FTZ can import and export goods duty free until they are released for sale in the U.S.

KEY BENEFITS OF A FTZ ARE:

There are several ways that businesses can benefit from operating in a Foreign-Trade Zone, including:

  • Businesses can save money if the tariff on a final product is lower than the tariff on the raw materials used to make the product.
  • Businesses can save money if they do not have to pay tariffs on raw materials lost during production due to waste factors. This is because businesses are required to pay customs duties only on the product that is released and shipped in the U.S.
  • Businesses can save money on customs entry fees. Normally, a business must file a customs entry and pay a processing fee on every single item imported into the U.S. In an FTZ, businesses can file one customs entry per week for multiple items. Businesses then only have to pay one processing fee per week rather than processing fees for every item.
  • Businesses can stop tying up their money in tariffs on inventory. Normally, businesses are required to pay tariffs on their imported goods at the time of import, but under an FTZ, businesses do not pay tariffs until after the product is released in the U.S. Therefore, businesses can use the money that would have otherwise been spent on these tariffs for other important needs.
  • Businesses can save money if they import raw materials to manufacture a product that is then re-exported. Businesses save money because they never have to pay tariffs on the raw materials or final product.

RESOURCES

U.S. Foreign Trade Zone Board
http://enforcement.trade.gov/ftzpage/

National Association of Foreign Trade Zones Board (NAFTZ)
http://www.naftz.org/

Greater Rochester International Trade

http://www.rochesterbiz.com/InternationalTrade.aspx

FTZ Board:

http://enforcement.trade.gov/ftzpage/index.html

CBP Trade Information: 

http://www.cbp.gov/trade

2014 Harmonized Tariff Schedule (HTSUS):

http://www.usitc.gov/tata/hts/

International Trade Administration:

http://www.ita.doc.gov

Export Import Bank of the US:

http://www.exim.gov

FTZ Savings Calculator - see attachment below.

FTZ Savings Calculator

FTZ 289 Zone Schedule

Want to learn more?

Contact: Suzanne Vary, Ontario County Economic Development
Phone: (585)396-4866
Email: suzanne.vary@co.ontario.ny.us
Website: www.ontariocountydev.org