By deferring, reducing, or eliminating customs duties, qualified companies can improve cash flow, lower inventory costs, and improve their bottom line through use of FTZs. FTZ procedures such as direct delivery, weekly entry and zone-to-zone transfer expedite the movement of merchandise, removing critical hours or days from delivery cycles and improving competitiveness. FTZ usage also enables companies to reduce inventory levels and to consolidate transaction reporting and costs.
While overall duty rates have decreased over time, trade complexities and associated costs have increased, thereby increasing the value of FTZ program benefits.
Implementing FTZ benefits starts with a successful federal application but doesn’t end with an approval. FTZ activation and operational implementation are fundamentals to success, requiring in-depth knowledge of inventory control, operational impacts and the FTZ regulations. Selection and implementation of a sound inventory control and recordkeeping system is essential to the optimization of FTZ benefits.
RGFTZS provides the expertise necessary for success and a solid track record assisting companies through the application process, activation period, and continuing FTZ operations. Contact us at your convenience for a presentation, including a savings analysis specific to your company.