Last week, we talked about the challenge of “drawback,” and the lengthy process it takes to recoup duties already paid to the U.S. government on imports which were subsequently exported (and as such, no duties should have been paid), and how working with a Foreign Trade Zone can help to save those up-front costs.
There are other categories of imported goods that also fall into a category where duties should not be paid – including merchandise that doesn’t meet the buyer’s specifications. Another benefit of working in an FTZ is that can you inspect your imported goods without paying duties up front. Should those goods need to be returned, re-exported or destroyed due to quality or damage, you’re not out-of-pocket on the duties. Outside the FTZ, an importer will pay full duties and then need to go through the process of recouping that money later.
Agricultural products are a good example of this type of freight. With the need for timeliness with ag products, there is always a risk with imports that freight can be damaged or spoiled. When this happens – and it happens in all industries, not just ag – a lengthy process ensues to correct just the basic financial implications of the transaction between buyer and seller, the challenge compounded by the fact that you’re doing business across international lines with countries that observe different rules. It’s a far cry from waiting in the return line at Target.
Now add to that now a lengthy process to get back the duties you’ve paid, as well. Using an FTZ as a partner in your import processes can help save you money and hassle (which we all know is money, too).
There are many benefits to using a Foreign Trade Zone. For easy reference, check out our web site at www.wnyftz.com, and then give us a call at (716) 823-2142, and let us walk you through how WNYFTZ can benefit you specifically.
This post is the fourth in a series of posts about the benefits of doing business in a Foreign Trade Zone. Western New York Foreign Trade Zone Operators manage the Foreign Trade Zone in Lackawanna, NY, ten minutes from the Peace Bridge between the U.S. and Canada.