Are you thinking about expanding your business internationally? Foreign Trade Zones (FTZs) can be the secret weapon you need to dominate the global market. But what exactly are FTZs, and how can they benefit your business?
What is a Foreign Trade Zone (FTZ) and Why Does it Matter?
An FTZ is a designated area within the United States that, for customs purposes, is considered outside of U.S. territory. This unique status allows businesses to import foreign goods, store them, process them, and re-export them duty-free or with reduced duties. Essentially, FTZs offer a powerful avenue to optimize your global supply chain and compete more effectively in the international marketplace.
This means FTZs offer a multitude of advantages that can significantly impact your bottom line and boost your global competitiveness.
The 5 Advantages of Using a Foreign Trade Zone
1. Slash Costs and Boost Profits
A business using an FTZ can experience a multitude of cost-saving benefits. The duties and tariffs on imported goods are significantly reduced or eliminated, depending on the final destination of the product. As a result of the reduced costs, using an FTZ increases profitability, granting a competitive edge in the global marketplace.
As an example, for manufacturers of large industrial textiles, using an FTZ can significantly reduce import costs on raw materials like steel or synthetic fibers. Those
reduced import costs lead to increased profits. With extra profits, there’s more space for a manufacturer to expand their business on a global scale, where they couldn’t before.
Make space not only in your profit margins, but in your resources too. By utilizing NEMA’s FTZ, your business can have more space for manufacturing, increasing your production and profitability. Contact NEMA to make more room to grow.
2. Streamline Operations and Increase Efficiency
Businesses using FTZs experience streamlined logistics, faster time to market, and inventory optimization.
- Streamlined Logistics: FTZs facilitate smoother movement of goods through simplified customs procedures, enhanced on-site logistics infrastructure, and duty deferment options. This means faster processing times and reduced transportation costs, keeping your business’s supply chain moving efficiently.
- Faster Time to Market: Reduced lead times are a classic characteristic of FTZs. With quicker import and re-export processes, your products reach customers faster, boosting responsiveness and customer satisfaction. This agility gives you a significant competitive edge in the global business space.
- Inventory Optimization: Strategic inventory management is crucial for any business. FTZs allow you to store and manage inventory closer to your production or distribution centers, minimizing storage costs and ensuring you have the right products in the right place at the right time. This reduces stockouts and maximizes your ability to fulfill customer orders promptly.
3. Reach a Wider Global Market
When your business uses an FTZ, you gain a strategic advantage for expanding your international reach. This allows you to tap into new markets, source materials from different regions, and build stronger partnerships with global suppliers.
According to The National Association of Foreign-Trade Zones (NAFTZ), “FTZs are an important export-promotion tool.” “Thanks to the FTZ program’s cost savings and competitive benefits, Kubota North American Corporation, Atlanta, GA (FTZ #26) now exports 35% of its American-made sub-compact tractors, utility vehicles, and lawn mowers to Europe and Australia.”
Grow your business with a proven partner in FTZ. As a registered FTZ facility, NEMA will give your business more room to grow in the global marketplace. Contact NEMA to start using our FTZ services.
4. Experience the Benefits of a Proven Partner
As a business, you don’t have to establish your own FTZ. When you work with another organization that offers FTZ services and facilities, you not only save on costs within your own company, but are partnered with another company working on your behalf. You get an FTZ expert in your corner, championing your business on a global scale.
If you are a business with an FTZ already, utilize NEMA’s FTZ warehouse to create more space. Using our FTZ warehouse will keep your products close by and enable you to do a simple zone-to-zone transfer. The zone-to-zone transfer will keep your product in its protected status until the items have completed production and are then entered into the US Commerce or is exported.
Experience seamless planning, set up, activation, and ongoing management of your product in a credible FTZ facility. Having an FTZ partner ensures you’re covered when those emergencies pop up unexpectedly, contributing to your business’s overall success.
5. Regulatory Relief
Using an FTZ partner grants you access to in-depth knowledge of customs regulations and compliance requirements, ensuring compliance for your business and minimizing the risk of penalties or delays.
A certified FTZ partner, like NEMA, gives you access to a team of professionals, who have decades of experience navigating complex customs procedures, allowing you to focus on other areas of your business. This means less paperwork, simplified regulations, and readily available support from your FTZ team.
Ready to Unleash the Power of an FTZ?
The advantages of using an FTZ for your business are undeniable. From significant cost savings and operational efficiencies to increased global reach and economic benefits, FTZs offer more room to grow.
Partner with NEMA’s FTZ team to unlock your business’s full potential. Gain access to our international trade experts, stay compliant, and unleash a whole range of new benefits for your business’s growth.
Store your products or raw materials in our facility duty-free until the items are released for use, offset costs (deferred duties), and ease your company’s supply chain issues.
Contact NEMA today to schedule a consultation and explore how our FTZ service can transform your business.
