What is a Foreign Trade Zone?
A foreign trade zone is a designated area in which foreign and domestic
merchandise is generally considered by the U.S. government as being outside U.S.
Customs territory. Merchandise may be brought into an FTZ without a formal
customs entry.
Why Use the Port of Stockton's Foreign Trade Zone?
The Port offers a strategic link to interior U.S. markets. Its unique location
makes Stockton an ideal distribution point for shippers sending goods to the
Western U.S. Market. Shipping overland to these areas is easy because of direct
access to a vast network of interstate highways and railroads.
Stockton's FTZ includes facilities located throughout the Stockton area offer a
variety of services, allowing more flexibility and diversity than many other
zones.
What Activities Can Be Done In A FTZ?
The merchandize may be:
Assembled
Cleaned
Destroyed
Disposed
Exhibited
Handled
Manipulated
Manufactured
Mixed
Stored
Processed Relabeled
Repackaged
Sampled
Stored
Tested
What are the Benefits of FTZ?
- Imports may be held in a FTZ without paying customs.
- Users can pay the duty rate of the component material or the duty rate of the merchandize produced from component material.
- Customs are not paid in merchandize that is exported from a zone.
- Duties are reduced or eliminated on materials that are defected, damaged, wasted or scraped.
- Merchandize may be exported, transported and returned without paying duties.
- Delays in Customs clearances and duty drawback results reduced or eliminated.
- Duties are not paid on labor, overhead and profits.
- Quality control inspections may identify goods to be destroyed or returned that do not pay duty fees.
- Spare parts may be stored, destroyed or returned without duty payment.
- Merchandize with in-bond/zone-to-zone status do not pay duty. collectively monitored
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For more information, contact:
Henry McKay, FTZ Manager
Port of Stockton
voice: (209) 946-0246
e-mail to: hmckay@stocktonport.com