ADVANTAGES FOR YOU
The Port of Wilmington and Port of Morehead City are designated Foreign Trade Zone 214. A Foreign Trade Zone is a secure area within the U.S. but outside U.S. Customs territory. Foreign and domestic merchandise can enter an FTZ and avoid a formal customs entry and many customs duties, government excise taxes and cargo examination. For businesses involved in international trade, an FTZ offers tremendous economic benefits and allows you to be a stronger competitor. Most notably, customs duties and excise taxes are not applicable on many shipments. The reduction of these costs, in turn, saves money on cargo insurance. In practice, shipments through an FTZ are substantially faster and more predictable than those without FTZ control.
Other Benefits
- Cargo may be held duty-free in inventory
- Faster delivery times
- Lower cargo insurance rates
- Cargo protected by security
- No country-of-origin labels required
- Inventory control from careful accounting on receipt, processing and shipment of merchandise
- No state and county inventory taxes
- Substandard goods can be destroyed before duty is paid
- Title to merchandise may be transferred in an FTZ as long as there is no retail sale
- No specific ID of merchandise needed
- Goods subject to U.S. quotas may be held until quotas open
Zero Customs Duties On
- Goods exported from an FTZ
- International returns
- Spare parts
- Goods consumed in processing in an FTZ
- Merchandise & machinery held for exhibition/display
- Merchandise transferred from one FTZ to another FTZ
Reduced Customs Duties On
- Goods exported from an FTZ
- Defective, obsolete, waste and scrap merchandise
- Labor, overhead and profit related to production in the FTZ
- Paying the duty rate on component materials of merchandise produced from those materials—whichever is lower
