Foreign-Trade Zone (FTZ) #207
Richmond International Airport has been designated a Foreign-Trade Zone (FTZ) #207, where foreign and domestic merchandise is considered to be in international commerce (not in U.S. Commerce territory), meaning that foreign merchandise may be admitted into the foreign-trade zone without payment of Customs duties or government excise taxes.
The Capital Region Airport Commission has applied to the Foreign-Trade Zones Board for reorganization of Foreign-Trade Zone #207 under alternate site framework (ASF) to permit significantly greater flexibility in the designation of new “subzones” or “usage-driven” FTZ sites. Reference Federal Register document #2014-11889.
The Benefits of using a FTZ
FTZ’s allow businesses to reduce the costs associated with production, transaction and logistics. While FTZ’s remain under the direct supervision of U.S. Customs and Border Protection, businesses don’t pay duties on imported goods that are later re-exported. Additionally, businesses can benefit from the delayed payment of duties on goods that enter the U.S. market.
Other benefits include:
Merchandise isn’t subject to state, local or inventory taxes.
Penalties and fines can be avoided for materials with incorrect origin markings.
Merchandise can be transferred from one FTZ to another, to a subzone or, for certain activities, temporarily removed from the FTZ.