Financial Benefits:
EFFECTIVE CASH FLOW - Funds are not tied up paying U.S. Customs duties or posting bond while goods are held within the zone. Duties on foreign goods intended for domestic consumption are levied only at the time goods are removed from the zone and only on quantities actually removed. As a result, sale proceeds are available at the same time duties are due.

LOWER DUTIES - Foreign goods can often be processed in a Foreign Trade Zone, reducing U.S. Customs duties, since manufactured goods are often subject to lower duties than components.

COST AVOIDANCE - Companies avoid customs duties on moisture, dirt, culls, defective merchandise, scrap, other waste and shrinkage.

ASSEMBLY COST SAVINGS - An industrial product that requires assembly or manufacture can often be assembled in a Foreign Trade Zone resulting in a considerable duty advantage over comparable product made on foreign soil.

Convenience and Flexibility:
STAGING - The Foreign Trade Zone can be used as a staging area for inventory and spare parts, considerably reducing lag time inherent to delivery from abroad.

SHOWCASE - Prospective buyers may be given the opportunity to see samples of goods stored in a Foreign Trade Zone.

QUOTA COMPLIANCE - If the goods being imported are subject to a quota, the goods may be stored in a Foreign Trade Zone pending the issuance of additional quota allocations.

CO-MINGLED PRODUCT - A Foreign Trade Zone provides particular flexibility in instances where local components or products are to be added to the goods prior to injection into the domestic economy.