Investigate the Benefits of our Foreign Trade Zone
A Foreign Trade Zone is designated by the United States Customs Department and allows foreign and domestic merchandise to be admitted for operations such as storage, exhibition, assembly, manufacturing and processing, without being subject to formal Customs entry procedures, the payment of Customs duties or the payment of federal excise taxes.
Companies conducting International Trade from Sault Ste. Marie Michigan benefit from the efficient service of a US Customs Port of Entry and Foreign Trade Zone #16.
Foreign Trade Zone/Port of Entry
Based on the Foreign Trade Zone Act of 1934, U.S. Foreign Trade Zones provide world-wide competitiveness strategies to firms throughout the nation. A Foreign Trade Zone (FTZ) is a site within the United States, in or near a U.S. Customs Port of Entry, where merchandise is considered to be in Internation commerce. Zones offer mechanisms for deferring, reducing, or altogether eliminating U.S. Customs duties on imported raw materials, commodities, parts, and components. The FTZ program brings flexible solutions to businesses, for issues not addressed by other Customs procedures. Exceptions may exist for goods subject to dumping or protective measures. All other federal, state, and local rules and regulations apply.
- Industries accounting for the most manufacturing activity in FTZs include: oil refineries, automotive manufactures and suppliers, pharmaceutical firms, and the electronic product sectors.
- All FTZ activity is subject to public review, and public process occurs before approval of individual FTZ projects.
Because FTZs are under the supervision of U.S. Customs and Border Protection, but not within their jurisdiction, the usual Customs forms for entry procedures and payment of duty are not required when foreign merchandise is admitted into an FTZ. When the foreign sourced merchandise leaves the FTZ for entry into the domestic commerce for consumption, Customs paperwork is filed. At the time of filing, the importer may choose to pay duty on the original foreign material or the finished product. Typically, the finished product carries a lower duty rate.
In addition to storage and processing, Foreign trade Zone users may:
- Avoid fines for improper labeling
- Display and demonstrate products without paying duty on those products
- Return damaged or defective goods prior to payment of duty
- Hold items currently constrained by quota limitations
- Eliminate the cost of temporary import bonds
FTZ Advantages
- Cash Flow
- Exports
- Waste/Scraps/Defects/Damage Obsolescence
- Inverted U.S. Customs Duty Savings
- Nondutiability of labor, overhead and profit
- Reduced cycle time
- Weekly Entries
- Harbor Maintenance Fee
- Taxation
- Production Machinery
- International Returns
- Country-of-origin marking/labeling
- Security
- Anti-dumping/countervailing duties
Merchandise activities permitted in a foreign-trade zone include:
| Assembly | Manufacturing | Repairing |
| Cleaning | Mixing | Salvaging |
| Destroying | Processing | Sampling |
| Displaying | Re-labeling | Testing |
| Manipulating | Re-packing |
Need more information on Michigan’s foreign trade zones click here.
Operator:
Sault Ste. Marie Economic Development Corporation: For addition information on Foreign Trade Zone #16 contact Kristen Claus at (906) 635-9131 or kclaus@saultedc.com. Also, more detailed information may be found at U.S. Foreign-Trade Zones Board or National Association of Foreign-Trade Zones