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A Foreign Trade Zone, sometimes called a
Free Zone or Free Port, is a safe area where goods can be landed, stored,
processed, and transshipped, all without incurring custom duties (import
tax).
Foreign Trade Zones can provide customers
with manufacturing, assembling, packaging, and display facilities, all
free of duties. They are considered outside the customs territory of
the United States in reference to many factors relating to international
trade.
Basically, a Foreign Trade Zone encourages
and facilitates international commerce.
The
Foreign Trade Zone recently acquired sub-zone status for Nissan and is in
the process of providing sub-zone status to two premier Nissan suppliers
located in Warren County; CalsonicKansei North America and Yorozu
Automotive Mississippi, Inc.
How You Benefit
Imports may be landed and
stored quickly and for an indefinite period without full Customs formalities
and quota restrictions. Plus, duties are not applicable in the zone.
Duty is not paid until
goods leave the zone. If imported goods are then shipped out of the
United Sates, duty payments are not required at all. And merchandise
may be withdrawn partially or in less-than-case-lots.
Goods may be insured while
in storage for their value alone, plus ocean freight costs without
additional coverage to include taxes and duties. Goods
may be processed or manufactured in a Foreign Trade Zone to qualify for
lower no no-duty status.
Custom duty may be avoided
on faulty materials or goods.
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Bulk lime
at Falco Lime
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Goods in excess of quota
may be held in the Zone until the next quota period.
Certain bonded merchandise
may be transferred to the Zone for export, canceling the bond or time
limit applicable to bonded warehouse, and making possible immediately
recovery of taxes already paid.
Taxes on whiskey, wines,
and other liquors held for re-export are not applicable while they are in
the Zone. Such materials, once placed in a Zone, are deemed
"exported."
Indefinite storage in a
Zone may be undertaken to await more favorable market conditions.
Currently,
Mississippi's sub-zones are operated through the Vicksburg/Jackson
Foreign Trade Zone. Any company in any part of the state with
significant quantities of imports and exports may apply for sub-zone
status.
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