Foreign Trade Zone

Companies locating in a Foreign Trade Zone (FTZ) save valuable time and money, and can significantly increase their operational efficiency.  The Tejon Ranch Commerce Center is already home to the largest activated FTZ in California.  A 177-acre FTZ that can quickly be expanded to 500 acres is another proven advantage of the Tejon Ranch Commerce Center.

Duty Deferral:

• Imported products admitted to the FTZ are not entered into Customs territory until they are withdrawn from FTZ.  Therefore, users obtain a cash flow savings by deferring Customs duties until the merchandise leaves the FTZ for consumption in the U.S.

Direct Delivery and Weekly Entry/Export:

• From a just-in-time inventory perspective, the FTZ program offers significant benefits.  Users may obtain permission from Customs to move merchandise directly from port of arrival to the FTZ avoiding delays at congested ports.
• On the outgoing side, users may obtain permission to ship unrestricted weekly (24/7) based on an estimate approved by Customs before the start of the business week. 
• Broker fees and merchandise processing fees paid to Customs may be significantly reduced by filing one entry per week versus daily entries or one per shipment. 
• Goods move in and out of the facility on an expedited basis allowing for a seamless supply chain from vendor to customer without maintaining unnecessarily high levels of inventory.

Duty Reduction:

• Imported products admitted to the FTZ can be placed in a special status that allows the merchandise to be classified in its condition as it is withdrawn from FTZ.  For manufacturers this means that an imported component with a higher rate of duty can be classified and appraised in its finished product form, with potentially lower rate of duty.

 

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