What is an FTZ?
A Foreign Trade Zone (FTZ) is an economic incentives program created by the federal government to facilitate international trade. An FTZ is physically located within a nation’s boundaries, but legally exists outside the Customs’ area. The Southwest Missouri Foreign Trade Zone can include any business in a 23 county region in Southwest Missouri (shown in blue on the map).
While merchandise is in an FTZ, Customs’ duties are delayed until it enters U.S. commerce. If goods enter the FTZ and are exported again, they may never be subject to U.S. Customs’ duties.
Is an FTZ right for your business?
Consider using an FTZ if any of the following applies to your company:
• You need to store imported goods, or show them to prospective buyers
• Never pay customs’ duties on goods exported from an FTZ or transferred from one FTZ to another
• Your domestic goods will be sold abroad and carry a high excise tax burden
• Some of your imported goods are damaged or destroyed, or have become a waste product of your finished merchandise
• The value of your imported merchandise is increased before it is sold
• There are U.S. quota restrictions on your finished product
• Continue to operate at your existing facilities
• Never pay Customs’ duties on goods exported from an FTZ or transferred from one FTZ to another
• Duties are not owed on labor, overhead or profit attributed to production in an FTZ
• Store your goods indefinitely, duty-free
• Minimize inventory cost
• Pay the duty rate on either imported components or the finished product, whichever is lower
• Duties are reduced or eliminated on damaged or waste materials
• Utilize the “weekly entry” feature approved by Customs to save processing fees and minimize procedural requirements
• Food and Drug Administration and Department of Agriculture non-approved items may be allowed into an FTZ
• Neosho sits at the crossroads of 2 major interstates, I-49 (North/South) and I-44 (East/West)
• Neosho sits at the cross section of 2 major railroads, Kansas City Southern (North/South) and Burlington Northern Santa Fe (East/West)
• Neosho’s Industrial Park already has railroad access & spurs throughout.
• With the widening of the Panama Canal to be complete in 2014, increased shipments arriving in Gulf cities will find rail transport to Neosho an attractive option.
• With the increase of manufacturing moving from China to Mexico, rail transport to Neosho is an attractive option for accepting imports.
How will an FTZ benefit Neosho?
This will attract employers and industries that might not have considered Neosho in the past. Not only will additional industry translate to additional jobs, the FTZ itself will provide job opportunities at competitive wages. Additional employers and their need for employees will create a demand for additional housing and provide for more paycheck money spent locally to increase sales tax revenues. Everyone wins.