Return to FTZ pageProperty owners in the Capital Region have a one time opportunity to participate in a major expansion of the Capital District Foreign-Trade Zone (FTZ #121). We are seeking suitable properties, industrial parks, multi-tenanted facilities, and/or properties contiguous to significant infrastructure assets — Airports, Navigable Waters or Rail Yards — to be included in the expansion application.
With the cooperation and assistance of the county economic development officers and the Zone Administrator, the Capital District Regional Planning Commission is embarking on an expansion of Foreign-Trade #121 to help develop jobs and increase prosperity in the Region.
This process requires:
A Foreign-Trade Zone Site can be an Industrial Park, an Industrial Development inside a Port or Airport, or an individual Company’s Facility (Subzone).
An active FTZ operation can lower costs in a number of key ways, including improving supply chain velocity through regulatory paperwork and delivery management, speeding up the logistics process by several days at a minimum, and reducing fees and duties.
Foreign-Trade Zone #121 Involves:
Foreign-Trade Zones provide more and better benefits than Bonded Warehouses, including Cash Flow Savings, Export Duty Elimination, Duty Reduction, Duty Deferral, and Inverted Tariff Savings.
| Function | Bonded Warehouse | Zone |
|---|---|---|
| Customs Entry | A bonded warehouse is within U.S. Customs territory; therefore, a Customs Entry must be filed to enter goods into the warehouse. | A zone is not considered to be within Customs territory. Customs entry is only required if, as, and when goods enter the domestic commerce of the U.S. |
| Permissible Cargo | Only foreign merchandise may be placed in a bonded warehouse. | All merchandise, whether domestic or foreign, may be placed in a Zone. |
| Customs Bonds | Each entry must be covered by either a single entry, term bond or general term bond. | No bond is required for merchandise in a Zone. |
| Payment of duty | Duties are due prior to release from bonded warehouses. | Duties are due only if and when goods enter the commerce of the U.S. |
| Manufacture of goods | Manufacturing is prohibited. | Manufacturing is encouraged. Duty is payable on either the imported components or finished product, whichever carries the lower rate, and only on the landed value of the imported goods. No duty on waste materials or on value-added in manufacturing, such as labor, overhead, domestic materials, and profit. No duty paid on goods exported from a Zone. |
| Appraisal & Classification | Immediately. | Tariff rate and value may be determined either at the time of admission into a Zone or when goods leave a Zone, at the owner's discretion. |
| Storage Periods | Not to exceed 5 years. | Unlimited. |
| Operations on Merchandise Destined for Domestic Consumption | Only cleaning, repackaging, and sorting may take place, under Customs supervision. | Sort, destroy, clean, grade, mix with foreign or domestic goods, label, assemble, manufacture, exhibit, sell, repack. |
| Customs Entry & Import Regulations | Apply fully. | Only applicable to goods actually removed from a Zone for U.S. consumption. |
| Jurisdiction of Other Federal Agencies | Applies to all foreign merchandise. | Variable depending on products, processes, and agency. |
| Copyright © 2007 — Capital District Trade Strategies, Inc., Administrator of FTZ #121 at Albany, NY | ||
| For a quick estimate of the benefits your company could gain in the first year of Zone operations, please see the FTZ savings calculator (MS Excel file) and then call us at 518-694-8676 for more information. You are also welcome to fill out the following online information request form. |
Return to FTZ page
Return to CDRPC Home Page