The Foreign-Trade Zone program is a federal program that allows companies to use special procedures to gain significant benefits related to the import/export of products. The Foreign Trade Zone is the administrative or service area covered by the Grantee or its Administrator, which in Central Indiana is referred to as FTZ #72. The foreign trade zone is the specific physical site (subzone or usage-driven) that a business designates for its use. For more information on FTZs, visit the About FTZs page.
The benefits of the Foreign-Trade Zone program will vary by company. The main benefits would include being able to reduce, delay, or completely eliminate customs duties on goods imported. The simplification of paperwork can also translate into increased efficiency. For a more thorough list of benefits, visit the Cost & Benefits page.
The Foreign-Trade Zone program fosters economic growth, supports U.S jobs, attracts offshore activity and encourages the retention of domestic activity, and drives the import/export of goods. To learn more about how foreign trade zones are promoting international business, visit the Statistics page
Merchandise in a zone may be assembled, exhibited, cleaned, manipulated, manufactured, mixed, processed, relabeled, repackaged, repaired, salvaged, sampled, stored, tested, displayed, and destroyed. Manufacturing, processing and any activity that results in a change of the tariff classification must be specifically approved by the FTZ Board. Retail trade is prohibited in zones. For more information on FTZs, visit the About FTZs page.
Any merchandise that is not prohibited from entry into the territory of the U.S. and is not restricted by regulations may be admitted to a zone. If applicable, import licenses or permits from other government agencies may still be required to bring the merchandise into the zone. For more information on FTZs, visit the About FTZs page.
Although it will vary by company and industry, participating in an FTZ program is usually worth a company’s efforts. INzone offers various links to conduct an initial cost saving calculation. The best way to learn more is to contact an INzone staff member.
Certain applications do have fees. Contact INzone to learn what fees might apply to your company.
The primary aim of the U.S. Foreign-Trade Zone program is to stimulate economic growth and development in the United States. The Foreign-Trade Zone program was created to advance American competitiveness by enjoining U.S. companies to maintain and expand their domestic operations. The Foreign-Trade Zone program fosters domestic operations by expunging certain regulatory hurdles and disincentives inherent to manufacturing within the United States. Furthermore, Foreign-Trade Zones benefit the community at-large due to the retention of jobs, capital, infrastructure, and tax-base.
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