What is a Foreign Trade Zone (FTZ)?

The FTZ is a program created by the federal government which has existed since the 1930's, and is still thriving today.  Its purpose is to facilitate trade and increase the global competitiveness of U.S. based companies.  Zones are areas within the United States the government considers outside of the U.S. customs territory.  Certain types of merchandise can be imported into a zone without going through formal customs entry procedures or paying import duties.

What are the benefits of locating my company in an FTZ?

There are three ways your company can benefit from an FTZ designation.

Deferral of Duties:  Customs duties are paid only when and if merchandise is transferred into U.S. customs territory.  This equates to a cash flow savings that allows companies to keep critical funds accessible for their operating needs while the merchandise remains in the zone.  There is no time limit that merchandise can remain in a zone.

Reduction of Duties:  In an FTZ, with the permission of the foreign-trade zones board, users are allowed to elect a zone status on merchandise admitted to the zone.  This zone status determines the duty rate that will be applied to foreign merchandise if it is eventually entered into U.S. commerce from the FTZ.  This process allows users to elect the lower duty rate of that applicable to either the foreign inputs or the finished product manufactured in the zone.  If the rate on the foreign inputs admitted to the zone is higher that the rate applied to the finished product, the FTZ user may choose the finished product rate, thereby reducing the amount of customs duty owed.

Elimination of Duties:  No customs duties are paid on the merchandise exported from an FTZ.  Duty is eliminated on foreign merchandise admitted to the zone but eventually exported from the FTZ.  Customs duties are also eliminated for merchandise that is scrapped, wasted, destroyed or consumed in a zone.

Where are the current designated zones for Cumberland County?

Currently, there are 3 designated zones in Cumberland County.

ProLogis Park 81 - Located at 234 Walnut Bottom Rd and the Southeast quadrant of I-81 in Southampton Twp.

LogisticCenter - There are 7 properties in this location.  100 Allen Rd. Extension; 1000 Distribution Dr.; 1101 Distribution Dr.; 1200 Distribution Dr.; 1301 Distribution Dr.; 1400 Distribution Dr.; 1501 Distribution Dr.; 1600 Distribution Dr.

Key Logistics Park - Located at Centerville Rd., Newville

If these locations don't meet my business needs, can I apply for a zone designation for my business?

Yes you can.  For more information on this process, please contact Anthony via the information listed below.

How can I get more information on FTZ 147?

Please contact Omar Shute at 717-240-7182 or Omar@cumberlandbusiness.com to schedule an appointment with CCED and the Zone Administrator to review your project needs and requirements.