Foreign-Trade Zones: The Best, Zero-Cost Incentive for Your Business

Even though the FTZ program was created in 1934, its relevance today is huge. After the year 2002, when Customs allowed for weekly entry (which greatly increased the demand for zones in warehouse and fulfillment centers), the FTZ program entered an even more lucrative incentive profile.

This profile is enhanced by the fact that over the last five years the U.S. government has decided to manipulate global trade that results in imports into the U.S. by increasing duty rates by a factor of 10. Prior to the Trump administration, the average duty rate in America for most imported goods was 2 percent. After the Trump years, and furthered by the Biden administration, the average duty rate right now for over $4 trillion worth of consumer products and retail goods is standing at around 20 percent. When I say $4 trillion, I’m talking about the sales price you and I pay as American buyers.

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