In 2007 LVEDC was granted a FTZ for the Lehigh Valley (FTZ #272). This allows companies, who want to strengthen their bottom line and position themselves to complete better in the world market place, to apply for FTZ benefits. LVEDC as Grantee of FTZ #272 is responsible for managing the zone project and sponsoring applications to the FTZ Board.
In 1934 the United States Congress passed the Foreign Trade Zone Act to “expedite and encourage foreign commerce” in the United States. A Foreign Trade Zone (FTZ) is a physical location within a United States customs territory, where merchandise receives the same treatment as if it were outside the commerce of the United States. This allows merchandise, while located in the FTZ, not to be subjected to customs duties and other tariff and taxes.
Since the initial 1934 FTZ Act, Congress and the FTZ Board have made changes to the program that allow for additional benefits for a greater variety of users. Domestic-based manufacturers could import foreign-sourced part or materials into the FTZ and not be responsible for paying duties on them. They could then incorporate those parts or materials into their products, utilizing United States labor, and sell the part or materials in the domestic market, thus selecting whether to have the customs duty apply to the components or the finished product.
Distributors can also benefit as the FTZ allows for direct delivery from the ports into the Zone, which can save time, money, and reduce customs processing fees. Merchandise can also be moved from one FTZ or another without being subject to customs duty via a process called Zone-to-Zone Transfer.
To learn more please contact Jarrett Witt at 610.266.0523 or firstname.lastname@example.org.
|SBA 504||5.07% (20 years)||7/3/14|