City of Phoenix Foreign Trade Zone

The city of Phoenix's Foreign Trade Zone (FTZ) offers substantial benefits for many types of businesses that import a considerable amount of goods. The FTZ program helps businesses to improve cash flow significantly, cut costs and gain a competitive advantage. Just ask industry leaders such as Intel, PETsMART, STMicrorelectronics, Conair, SUMCO Southwest, Microchip Technology, and Abbott Laboratories about the proven advantages of operating in Phoenix's FTZ program!

Officially outside of U.S. Customs territory, the FTZ allows businesses to defer or eliminate duty on imported goods prior to actually entering the United States. Site specific FTZ's, called subzones, can be created for qualified businesses that wish to locate anywhere within the city. The business virtually becomes a point of entry to the United States.

Though similar to a bonded warehouse, the FTZ actually provides a greater amount of flexibility and benefits. For example, the FTZ allows businesses to manipulate goods prior to going through Customs. Businesses may also simply store imported goods on site for an unlimited amount of time, without a bond, until they leave the zone. Businesses only pay duty when the goods enter US Customs territory. Therefore, almost any business that imports a considerable amount of goods can benefit.

The main benefits to a qualified manufacturer include:

• Savings on freight and duty by shipping unassembled or disassembled merchandise to an FTZ and reassembling it within a zone.
• The option of paying the duty rate on the imported goods as imported or as assembled or disassembled, whichever is less.
• Avoiding quotas on goods shipped off-shore or manufactured into a product and entered into US Customs territory.
• The ability to integrate domestic and foreign status materials in packaging and/or manufacturing prior to export or paying duty on the foreign status materials.

The main benefits available to a qualified distributor or trader include the ability to:

• Move merchandise from zone to port to zone without paying duty.
• Store goods for export in the FTZ without paying duty.
• Store quota-restricted goods for future release into US Customs territory.
• Repackage goods for easier and more efficient distribution prior to entry into the US Customs territory.

Other benefits for any qualified business include the ability to:

• Display goods prior to entering US Customs territory.
• Eliminate defective goods and waste prior to paying duty.
• Realize a savings in real and personal property taxes of 80 percent on new investment.
• Label qualified merchandise leaving the FTZ with "Assembled in USA" or "Made in USA" labels.
• Enter goods into US Customs territory when duty rates are most favorable.

For more information on how your business can benefit from being located in an FTZ Subzone, contact (602) 262-5040.

You may request information on city of Phoenix business assistance services through our email address. Please include your full mailing address and phone number.