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.