Foreign Trade Zone 22

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Foreign Trade Zone # 22 “Duty Free Shopping” For Chicago’s Industrial Economy

description

 

Transcript of Foreign Trade Zone 22

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Foreign Trade Zone # 22

“Duty Free Shopping”

For

Chicago’s Industrial Economy

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Foreign Trade Zone Formation

• Created by Department of Commerce Foreign Trade Zone Board

• Managed by Customs and Border Protection Service

• Local Police, Fire Protection and Other Regulatory Agencies Have Jurisdiction

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Types of FTZ Operations

• General Purpose: Multiple user warehouse and distribution operations

• Subzone Operations: Single user manufacturing operations

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FTZ Operation Benefits

• Duty exemption for re-exported goods

• Duty deferral for imported goods

• Inverted tariff on manufactured goods

• Just In Time inventory control

• Exports avoid local inventory property taxes

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Permitted FTZ Activities

• Assembly• Exhibition• Manufacturing• Mixing• Processing• Relabeling• Repackaging• Repairing

• Salvaging• Storing• Testing• Destruction

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Allowed Zone Locations

• Within Chicago Port of Entry

• Within 60 miles of Port of Entry Boundary

• Within 90 minutes Driving Time of Boundary

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Typical FTZ # 22 Users

• Automotive manufacturing

• Aviation electronics manufacturing

• Consumer electronics distribution

• Petroleum refining

• Pharmaceutical manufacturing

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