Foreign Trade Zones (FTZ) Software Solution
Foreign Trade Zones (FTZ) remain valuable and important to many different industries in the United States. Admission to the FTZ allows foreign and domestic merchandise to be considered in international commerce and outside of US Customs territory. As a result, activated businesses in an FTZ can reduce or eliminate import duties/fees and take advantage of other benefits while encouraging manufacturing in the United States, even with foreign materials.
Improve your competitive position by taking advantage of foreign trade zone benefits with MIC's MIC-CUST® FTZ module
An FTZ's primary advantage is its ability to improve a company's competitive position. Businesses can avoid import duties if goods that enter the FTZ are stored, sorted, tested, repackaged, and assembled within the FTZ, then exported without ever entering the US commerce. For those products that do enter the US commerce, duty payments are due only once the goods are withdrawn from the zone. Postponing payment provides a cash-flow advantage to importers and exporters. In addition, duty and tax rates on merchandise admitted to an FTZ may change because of operations conducted within the zone. A company may elect to pay either the duty rate applicable on the foreign material placed in the zone, or the duty rate applicable on the finished article transferred from the zone—whichever they find more advantageous (i.e. concept of tariff inversion).
The MIC-CUST® FTZ module not only satisfies the Customs and Border Protection (CBP) requirement for an Inventory Control and Recordkeeping System (ICRS), it also makes the ongoing operation of the FTZ more efficient and more compliant by providing an integrated suite of tools to manage all aspects of operating a zone. From initiating an In-bound movement to concurring a Zone Admission, MIC-CUST® FTZ provides a central dashboard to oversee the entire process. Additionally, the module allows managing inventory at the granularity required by your business process – first-in, first-out (FIFO), direct identification (e.g. by serial number, batch, lot, VIN) or a combination of the two are fully supported. Finally, details for all withdrawals from the zone can be transferred automatically to MIC-CUST® US ENTRY to directly file a Weekly Entry Summary with CBP.
When combined with other MIC modules, we can certify customs declarations in many countries for direct exchange of data with national customs authorities’ systems, including declaration of export shipments. We also offer a cost-effective solution for the determination, assignment and validation of tariff classifications and export control classifications validated against the national customs tariffs and export control commodity lists.