Foreign Trade Zone
Foreign Trade Zones (FTZ) are specially designated areas, in or adjacent to a U.S. Port of Entry, which are considered to be outside the Customs Territory of the United States. The Montgomery Area Chamber of Commerce operates general purpose zone #222 in the City of Montgomery. The zone covers a total of 5525 acres across four locations within the city.
Any number of firms may operate within the zone. Foreign and domestic goods may be admitted to a zone for the operations not otherwise prohibited by law. Merchandise may be stored, exhibited, assembled, processed, destroyed within the zone, or sent into U.S. Customs Territory subject to the customs duties and excise taxes only at the time they leave the zone.
Benefits of the FTZ:
- Duty exemption on re-exports
- Relief from inverted tariffs
- Duty elimination on waste and scrap
- No duty on rejected or defective parts
- Duty deferral
- No duty on domestic content or value added
- Relief from local ad valorem taxes
- No duty on sales to the U.S. military or NASA