FOREIGN TRADE ZONE NO. 175
To add to our unique features, The Eastern Iowa Airport has been designated one of a limited number of Foreign Trade Zones in the Midwest. With our FTZ No. 175 status, Cedar Rapids is rapidly becoming an important hub for international trade, and is the United States’ largest national exporter on a per capita basis.
What is a Foreign-Trade Zone?
A Foreign-Trade Zone (FTZ) is a site within the United Sates where foreign and domestic merchandise is considered to be in the stream of international commerce. Foreign and domestic merchandise may enter this zone without a formal customs entry, the payment of customs duties, or federal and state use/excise taxes and personal property taxes. Firms may also perform manufacturing or processing operations, packing or inspection checks, and a variety of other activities using imported goods before duties are paid. Scrap or rejected goods not entering the commerce of the United States are never taxed. By using a number of cost saving strategies, firms may use Foreign-Trade Zones to decrease operational costs associated with customs duties.
What are the advantages of using a Foreign-Trade Zone?
- Limit the requirement to pay customs duty on arrival of merchandise
- Eliminate duty on re-exported merchandise
- Eliminate duty on damaged or unmarketable items
- Defer duty payments until goods are ready for sale
- Limit non-value added costs while manipulation or processing merchandise in the FTZ
- Store both bonded and non-bonded merchandise within the FTZ
- Reduced insurance rate on merchandise stored in the FTZ