Shoreside Logistics' FTZ designation provides our customers who import products and raw materials from other countries many cost-saving benefits. An FTZ is a zone authorized as exempt from many regular U.S. Customs regulations and allows businesses to bring foreign cargo onto U.S. soil without immediately paying the duty tax.
By using Shoreside as their FTZ, businesses only pay duties once the cargo leaves the foreign trade zone, in the case of imported raw materials, once the final product enters U.S. commerce. The many benefits that importers can take advantage of includes improving cash flow, increasing global logistics efficiency, reducing redundant or unnecessary logistics costs, and retaining flexibility.
Goods coming into Shoreside’s FTZ don’t incur duties until they exit the zone. The time between import and export allows our customers to put off, or even eliminate, duty expenses while re-assembly, or manufacturing takes place to prepare products for entry into the US market, or for re-exportation.
This refers to the penalty U.S. manufacturers are subject to when importing parts for manufacturing of products within the U.S., specifically when these products will be exported and sold overseas. Sometimes the individual parts are taxed at a higher rate than the finished product, making it more cost-effective to manufacture overseas.
Shoreside’s FTZ empowers our customers to keep more of their manufacturing on U.S. soil without the penalty of higher tariffs.
An inventory tax or Ad Valorem Tax is a free charged on existing inventory. Warehousing items in Shoreside’s FTZ allows inventory to remain untaxed until it is transported onto U.S. soil.
Shoreside can inspect, repair, repack, or remove damaged & defective products in our FTZ for customers. Damaged & defective items can be destroyed within the zone and therefore not be subject to import duties and taxes. However, these processes inside of an FTZ are considered manipulation and must be preapproved by U.S. Customs & Border Protection. The local Customs Examination Station is at Shoreside’s warehouse, streamlining this process.
When finished goods or component parts are imported into the U.S. for eventual exportation, Shoreside’s foreign trade zone allows for the elimination of duties on those imports. Using an FTZ as an export distribution center can provide big benefits to our customers selling goods into international markets.