Workshop on Tariff Mitigation – Hear from Experts

*UPCOMING Free In-person FTZ Workshop: 

Thursday, April 17^th
11am-12:30pm
Port Administration Building - 3165 Pacific Highway

Register here: Tariff Mitigation Workshop - Understanding the Foreign Trade Zone Program

 

 

The City of San Diego Economic Development Department administers Foreign Trade Zone 153  for the San Diego region, including all of San Diego County plus Murrieta in southern Riverside County. In light of new and future tariffs and overall uncertainty in trade, we want our regional partners to be aware of the benefits of the Foreign Trade Zones (FTZ) Program.

 

FTZs are sites that are physically located in the U.S. but considered outside U.S. Customs territory that allow importers and exporters of all sizes to move goods in and out of the country while deferring, reducing, or eliminating duties/tariffs.  FTZs can benefit small and large businesses involved in a variety of industries such as construction, electronics, food production, fashion, luxury goods, medical equipment, and pharmaceuticals. Businesses can reduce costs and increase cash flow with the FTZ Program for activities that range from warehousing to repackaging to more intensive manufacturing.

Benefits

• Duty/Tariff Deferral: Customs duties are deferred on imports while kept in a FTZ site.
• Duty/Tariff Exemption: No duties on re-exports.
• Inverted Tariff: A lower duty rate than the rates on imports can result from manufacturing. The finished product’s lower duty rate can apply as it leaves the FTZ site.
• Logistical Benefits: Access to streamlined Customs procedures (e.g., “weekly entry” or “direct delivery”).
• Expedited Shipments: Delays in Customs clearance and duty drawback procedures are eliminated. Delivery times after U.S. arrival are reduced due to the special direct delivery procedure.
• Quality Control: The FTZ may be used for quality control inspections to ensure that only products that meet specifications are imported.
• Exhibition: Merchandise and machinery may be held for exhibition or displayed without duty payments. Retail trade is prohibited.
• Zone to Zone Transfer: Merchandise may be transferred under bond from one FTZ to another. Duties/tariffs are not owed until the merchandise is admitted into US Customs territory.
• No Duties/Tariffs: Elimination of duties and tariffs on waste, scrap and rejected or defective parts.
• Benefits Not Offered by Bonded Warehouses: There are no time limits on storage. Domestic and foreign merchandise can be kept in the same FTZ site. Manufacturing/assembly/kitting is allowed.

 

If you would like more information, contact our FTZ Manager, Karina Danek at KDanek@sandiego.gov.