Programs - Foreign Trade Zones
Houston created an area along the the Port of Houston, a place where tariffs, customs, and duties are suspended: foreign trade zones. This zone benefits Houston companies that trade international merchandise.
How does a foreign trade zone work?
- U.S customs considers Merchandise outside of their territory while inside an FTZ
- Businesses may bring merchandise into an FTZ without customs entry, import quotas, or other restrictions
- The United States assesses duties and excise taxes after merchandise enters U.S. commerce
What are the benefits of foreign trade zones?
- Storage: merchandise may be stored for an unlimited time
- Product Handling: Merchandise may be opened, examined, assembled, mixed, cleaned, labeled, or repackaged within the zone.
- Manufacturing: Products may be manufactured within a zone and may even include the combining of foreign and domestic merchandise.
- Exhibiting: Merchandise may be displayed, sampled or examined within the zone.
- Disposal: Waste materials and damaged or valueless merchandise may be destroyed within the zone to avoid duties.
For more details about this opportunity please visit the Port of Houston website.