Tri-Link’s ability to establish FTZ Subzones on private premises’ can benefit companies in several ways. As a Foreign Trade Zone Grantee and General-Purpose Operator (GPO), Tri-Link is authorized to establish a Subzone if certain conditions are met and approved by the local Port Authority.
What is a Foreign Trade Subzone?
A Subzone is a single firm site designated for a special purpose, typically manufacturing, under Zone procedures. A Zone Grantee (Tri-Link) may apply for Subzone status on behalf of a firm when the operations of the firm cannot be accommodated within the existing General-Purpose Zone.
FTZ Subzone Benefits
Tri-Link can help your company reap the benefits of establishing a Subzone, such as cutting costs, improving cash flow, and expediting exporting. Here is a list of the specific benefits of utilizing a Subzone:
- Store your in-bond goods free of duty or excise taxes
- Export transiting goods free of duty and excise taxes
- Generally no time limit on storage (bonded warehouses allow up to five years from the date of import)
- Duty and excise taxes are paid ONLY when the merchandise leaves the FTZ for consumption
- Heightened security requirements provide maximum protection against theft
- Goods entered into an FTZ for labeling, repacking, manipulation, or to be combined with other products (domestic or in-bond), can then be imported and/or exported to other countries
- Items in an FTZ can be mixed with other items, relabeled, and then exported to other countries with no need for a Customhouse Broker or the payment of duty or taxes
Applying for Subzone Status
A Subzone application is generally filed by the Zone Grantee on behalf of the firm and reviewed by the Foreign-Trade Zones Board.
- The application must show that the proposed use of zone procedures is in the public interest.
- The FTZ Board evaluates the net economic effect of the proposed activity on the U.S. economy.
- Subzone status, and the specific benefits available, depend on the operations the firm plans to conduct under zone procedures.
Eligibility is confirmed per project before an application is prepared.
Let Tri-Link Be Your Guide
Operating since 1991, Tri-Link offers consulting services to assess the potential for a Subzone and take the necessary steps. To discuss the possibilities, cost savings, and other benefits available, contact us.
