Building the business case for Foreign-Trade zones
With businesses looking to expand near-shoring and on-shoring capabilities, many are increasingly taking advantage of the ability of a Foreign-Trade Zone (FTZ) to deliver significant benefits. Any size of importer or exporter, including retailers and medium to large manufacturers, can defer costs incurred from customs duties, taxes, and tariffs, improve speed to global markets and competitiveness, and minimize encounters with bureaucratic regulations.
In addition to customs deferrals and exemptions, supply-chain companies save money in many other ways as well. By using FTZs strategically, companies can optimize their supply-chains, streamline logistics, gain control over their inventory, minimize regulatory hassles, and take advantage of tax breaks unavailable to companies operating outside of FTZs, among other things.
Though FTZs are often viewed as only being cost-effective for large companies, the truth is that almost any company involved in import/export activities can find opportunities for savings by operating an FTZ.
Although it is not necessary to have an FTZ in place before embracing a broader global management strategy, it’s often the starting point on the GTM journey. The Thomson Reuters updated e-book ‘Building the business case for Foreign-Trade zones’, will clearly illustrate the advantages an FTZ delivers to a typical U.S. importer to help build the business case. Areas covered include:
- Understanding FTZs and the market. Definitions and categories
- Operational benefits
- Case studies
- Practical steps to get started
- How to maximize savings opportunities
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