Huntley area businesses are located within Foreign Trade Zone (FTZ) #176, and therefore have access to all the benefits associated with participating in FTZ programs. The FTZ program is a partnership between the U.S. government and private sector importers. Each approved location is a specially designated area and considered to be outside of U.S. Customs territory. For that reason, when cargo arrives in the country for an FTZ operator, it does not immediately clear customs. The cargo receives preferential treatment with duties deferred, reduced or eliminated. In addition, there are supply chain, inventory control and other savings available through the FTZ program.
FAST FACT: In 2012, nearly 25% of economic output from the Rockford metro area was in exports, making it the 33rd most export-intensive region in the country, according to The Brookings Institution.
WHAT ARE THE BENEFITS OF USING A FTZ?
Defer, reduce or even eliminate duties and fees paid on imported product:
There is significant deferral on the average inventory during the first year in the FTZ program
Foreign merchandise in the zone may be re-exported free of duty and federal excise tax
Returns of foreign merchandise to exporters pay no duties on these products
Value added to merchandise in an FTZ subzone/site is not dutiable
Certain duty deferral and reduction benefits apply on production equipment
The insurable value of foreign merchandise in an FTZ subzone/site will not include customs duties already paid, reducing insurance premiums
SUPPLY CHAIN TIMELINE
Product is not held at the port of entry for customs clearance, often resulting in a one to three day reduction in the supply chain. With prior approval by customs, FTZ operators can facilitate the movement of foreign product: Customs officers do not need to be present to break seals or ship products. This benefit is especially valuable to 3PL’s and large distribution centers with cross dock operations.
FTZ demands accurate reporting to follow foreign merchandise from receipt and processing to shipment for export or entry into U.S. customs territory.
Reduces inaccurate inventory, emergency shipments and tracking of import receipts from the point of origin to the final destination. Increased accountability will reduce staff time needed to deal with government regulations.
Fungible inventory accounting methods, such as FIFO and FOFI (foreign first), are approved for zone operations.
WILL MY COMPANY BENEFIT?
Indicators that your company should consider FTZ include:
You are located in the Huntley area
You import significant value of product, and/or expect imports to grow
You re-export a substantial percentage of imports
You hold significant value of inventory
Below are attached several links which may further assist in determing the benefits of participation:
Huntley First! is a premier online resource for available properties and economic development information for Huntley Illinois, Northern Illinois and the Chicago region. Site selectors and economic development professionals will find a wealth of information, statistics, demographics and available property here. For more information regarding available properties and economic development opportunities, please contact the Village of Huntley Illinois, or email Margo Griffin at firstname.lastname@example.org.