Foreign Trade Zone Designated Site #227

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 reexp[orted, 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.

In Arizona, A Zone that is approved and activated may be re-classified down from 20% tax valuation to 5% valuation resulting in the tax benefit of a 75% reduction.

Some of the advantages may include:

  • » 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

These (approved) activities can be conducted in a zone:

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