Contact:

Alfred Figuly
One New Century Parkway, Suite 110
New Century, Kansas 66031
816.474.2227
alfiguly@gkcftz.com

Foreign Trade Zones

The Greater Kansas City Foreign Trade Zone, Inc. (GKCFTZ) is a regional grantee of the national FTZ program. GKCFTZ has been the grantee since 1974 and was the first non-profit organization to be designated a grantee. GKCFTZ sponsors both Foreign-Trade Zone No. 15 in Kansas City, Missouri, and Zone No. 17 in Kansas City, Kansas. Zone 15 serves FTZ needs in 22 contiguous counties in the western half Missouri. Zone 17 presently serves 9 counties in metropolitan Kansas City, Kansas.

See where FTZ are located in Greater Kansas City

View a listing of FTZ in Greater Kansas City

What is a Foreign Trade Zone?

A foreign-trade zone is a designated location in the United States that is outside of Customs territory for purposes of collection of US Customs duties and fees. Foreign goods and merchandise admitted duty-unpaid to a Foreign Trade Zone where they can be stored, processed, repackaged,  transformed  destroyed or otherwise handled by company employees providing value-added work before they leave the FTZ (when a formal entry is filed) or exported. FTZ users enjoy many cost-saving benefits in cost of goods stored, produced/assembled in FTZ’s  as well as cost reductions in transportation, distribution and other components of their supply chains.  

Foreign-Trade Zone Board

The Foreign-Trade Zones Board is comprised of the Secretary of Commerce and the Secretary of the Treasury. The Board is chaired by the Secretary of Commerce. The Commissioner of U.S. Customs and Border Protection also plays a key role, as it did prior to its recent move from Treasury to the Department of Homeland Security, providing a position during the FTZ Board voting process with respect to customs security, control, and resource matters. The Board has delegated action authority on most matters to a Committee of Alternates, which is composed of the Assistant Secretary of Commerce for Enforcement and Compliance and the Deputy Assistant Secretary of the Treasury for Tax, Trade, and Tariff Policy. Learn more about the FTZ Board. 

Benefits to a Zone User:

Duty Exemption

No duties on or quota charges on re-exports.

Duty Deferral, Reduction, Elimination

Customs duties and federal excise tax deferred, reduced, or eliminated on imports.

Inverted Tariff

In situations where zone production results in a finished product that has a lower duty rate than the rates on foreign inputs (inverted tariff), the finished products may be entered at the duty rate that applies to its condition as it leaves the zone.

Logistical Benefits

Companies using FTZ procedures may have access to streamlined customs procedures (e.g. "weekly entry" or "direct delivery").

Other Benefits

Foreign goods and domestic goods held for export are exempt from state/local inventory taxes. FTZ status may also make a site eligible for state/local benefits which are unrelated to the FTZ Act.

Subzone/Usage-Driven Site

If a company is interested in pursuing FTZ designation for its facility, the process under the FTZ Board's 2012 regulations is quick (as little as 30 days with a maximum time of 5 months, depending on the specific procedure used by the applicant) and straightforward. The GKCFTZ can provide guidance on specific procedure to follow and assist in preparing the application.

Production Authority

Any company interested in applying for production authority in a zone should perform a cost-benefit analysis to make sure that the FTZ benefits outweigh the costs of operating in the zone. The first step to request production authority is to submit a "Production Notification." 

The standard timeframe for the FTZ Board to make a decision on a production notification is 120 days from submission. If the FTZ Board determines not to authorize certain activity at the end of the notification process, the applicant may choose to use the more extensive "application" process for production authority.
Evaluate Your Potential FTZ Duty Savings

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Information for grantees, operators and users, including Annual Report information and more.  

Want to learn more?
Contact Alfred Figuly
One New Century Parkway, Suite 110
New Century, Kansas 66031
816.474.2227
alfiguly@gkcftz.com

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