Foreign Trade Zone No. 68

DEFINITION BENEFITS SERVICES

WHAT IS A FOREIGN-TRADE ZONE?

A foreign-trade zone (FTZ) is a site within the United States, in or near a U.S. Customs port of entry, where foreign and domestic merchandise is generally considered to be in international commerce. Foreign or domestic merchandise may enter this enclave without a formal Customs entry or the payment of Custom duties or government excise taxes.

In a FTZ, merchandise is still considered to be in international commerce, whereby it can:

BENEFITS

Eliminate Duties and Quota Charges:In a FTZ, Customs duties and quota charges are not paid on merchandise exported.
Defer Customs Duties and Federal Excise Tax: On imports, Customs duties and taxes can be delayed until merchandise is transferred into US Customs territory. Importers can store goods in an FTZ indefinitely without paying duty.
Reduction of Duties: By electing a zone status that Users apply to the lower duty rate for foreign inputs or finished goods, duties can be reduced.
Avoid Customs Fines & Seizures: Merchandise can be admitted into an FTZ without markings, visa or quota documentation, while bringing their products or documentation into compliance with customs regulations.
No Duty on Waste: Products that arrive damaged can be returned, stored in the FTZ or destroyed without having to pay duty or taxes.
US Quotas: US Quota restrictions do not apply in an FTZ. When a quota opens the merchandise may subsequently be entered into the US Commerce.
Eliminate Drawbacks: Drawback laws are complex and expensive to administer
Improve Cash Flow and Profitability: through special Customs procedures such as Weekly Entry and Weekly Exports, companies can save on Customs transaction fees and expedite shipments out of an FTZ, thus improving their competitiveness.
Avoid Taxes: No state and local ad valorem taxes apply to foreign merchandise in an FTZ. IRS and government excise taxes are charged only when they are entered into the US Commerce.
Reduced Bond & Brokerage Costs: In an FTZ the cost of buying an entry bond is eliminated, and brokerage fees are reduced because there is no post entry work.

SERVICES OFFERED BY FTZ No. 68

The City of El Paso is the Grantee and Operator of Foreign-Trade Zone (FTZ) No. 68. The mission of FTZ No. 68 is to promote, market and manage the FTZ as a tool for attracting jobs, industry and investment to the El Paso trade area. FTZ No. 68 is a major component of the City’s economic development efforts to enhance international trade, while providing air transportation services integrated into a one stop international trade “hub” at El Paso International Airport.

FTZ No. 68 is a General-Purpose Zone that contains 3,003 designated acres at 21 non-contiguous industrial sites through out the El Paso port of entry. Because of its strategic location, FTZ No. 68 is a tremendous benefit to Maquiladora (twin-plant) operations in Cd. Juarez, Mexico, just across the international border with El Paso.

Its strategic location sets it apart from many ports of entry and FTZs. This has made it the largest in volume General-Purpose Zone along the US/Mexico border for over 10 years, and one of the top five in volume General-Purpose Zones in the nation for the last five years.

FTZ No. 68 administrative staff provides direct coordination to interested companies in activating a facility, operational start-up, training and on-going support. Four public warehouses serve importers and exporters that do not wish to operate their own FTZ facility.

For more information, please contact:

Jose Quiñonez, Jr.
FTZ Manager
Foreign-Trade Zone No. 68
501 George Perry Blvd Suite I
El Paso TX 79906-4932

Tel. (915) 771-6016
Fax (915) 772-2491
E-mail: Quinonezji@elpasotexas.gov
Website: www.elpasotexas.gov/ftz

Last Updated: 6/2/09