Foreign Trade Zone

Designated Site #277

Foreign Trade Zones (FTZs) provide special customs procedures to U.S. plants engaged in international trade–related activities. Duty–free treatment is accorded items that are processed in FTZs and then re-exported, and duty payment is deferred on items until they are brought out of the FTZ for sale in the U.S. market which helps offset customs advantages available to overseas producers who compete with domestic industry.

Learn More About FTZ no. 277

In Arizona, a Zone that is approved and activated may be re–classified down from 18% tax valuation to 5% valuation resulting in the tax benefit of a 72% reduction.

This translates to between $0.85 to $1.25 per square foot in annual operating costs.

Advantages

  • No time limit on goods stored in FTZ
  • Merchandise exempted from state and local taxes
  • Minimized costs while products wait for shipment
  • Quota restrictions waived for items entering FTZs

Zone Activities

  • Assembling, packaging, destroying, storing cleaning
  • Exhibiting, re–packing, distributing, sorting, grading
  • Testing, labeling, repairing
  • Combining with foreign or domestic content
  • Certain types of processing