No duties on or quota charges on re-exports.
Customs duties and federal excise tax deferred, reduced, or eliminated on imports.
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.
Companies using FTZ procedures may have access to streamlined customs procedures (e.g. "weekly entry" or "direct delivery").
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.
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.
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.