Foreign Trade Zone No. 275 - Save Money and Gain Efficiencies

The FTZ program was established in 1934 to help US companies compete around the world by eliminating, deferring, or reducing duties and fees. In today's global economy, FTZ's continue to play a significant role in keeping US companies competitive by streamlining importing and exporting activities and reducing overall costs. Port Lansing was approved to open Foreign Trade Zone (FTZ) No.275 in August, 2009.

FTZ No. 275 Service Area

FTZ’s are designated areas within the United States, in or near a U.S. Customs port-of-entry, where foreign and domestic merchandise is considered to be outside the country, or at least outside of U.S. Customs territory.

In 2011, there were 171 active FTZ's with a total of 269 active manufacturing/ production operations.

Approximately 340,000 persons were employed at some 2,800 firms that used FTZ's .

The value of shipments into zones totaled over $640 billion, compared with $534 billion in 2010.

About 57% of the shipments received at zones involved domestic status merchandise. The level of domestic status inputs used by FTZ operations indicates that FTZ activity tends to involve domestic operations that combine foreign inputs with significant domestic inputs.

Warehouse & distribution operations received nearly $106 billion in merchandise while

manufacturing/production operations received $535 billion (83% of zone activity). The largest

industries accounting for zone manufacturing/production activity include the oil refining, automotive,

electronics, pharmaceutical, and machinery/equipment sectors.

Exports from facilities operating under FTZ procedures amounted to over $54.3 billion. The export figures do not include certain indirect exports involving FTZ merchandise that undergoes further processing in the United States at non-FTZ sites prior to export.
* *FTZ Board 2011 Report to Congress

FTZ No. 275’s General Purpose Zone (GPZ), located near the airport terminal, allows companies to benefit from the FTZ program quickly and affordably. GPZ’s leverage experienced FTZ operators to perform key compliance and logistics functions and helps reduce your company’s overall logistics expenses. Take direct delivery of your imported (and/or domestic) products, reducing delays at large hubs that may take days to clear customs. FTZ No. 275 can improve overall lead times and localize your customs clearance process, which helps cash flow and operational efficiencies.

There are several benefits to utilizing the FTZ program. Participating companies benefit in different ways, depending on a wide variety of factors.

Major FTZ Benefits Include:

Cash flow improvement with elimination, reduction or deferral of duties
Reduced customs entry fees
Savings on scrap, waste and yield loss
Direct delivery of imports
Duty exemption on re-exports
Duty elimination/reduction through inverted tariff

For additional details on benefits gained from participating in the FTZ program, click here.
Contact Port Lansing staff to explore how your company can benefit from FTZ No. 275.

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