Prince George’s County EDC operates county-wide Foreign Trade Zone (FTZ) #63. Companies can access FTZ benefits from anywhere in Prince George’s County and do not have to be located in a specific area.
What is a Foreign Trade Zone?
An FTZ is a specially designated area that is considered to be outside the customs territory of the U.S. In an FTZ:
Foreign and domestic merchandise may be brought in without being subject to payment of customs duties.
Merchandise including raw materials, components and finished goods, may be stored, sold, exhibited, repacked, assembled, sorted, graded, cleaned, or otherwise manipulated prior to re-export or entry into the national customs authority.
Duties are imposed on the merchandise (or items manufactured from the merchandise) only when the goods pass from the zone into an area of the country subject to customs.
Benefits of a Foreign-Trade Zone
FTZ programs offer competitive advantages that allow companies to keep their manufacturing and distribution operations in the U.S., instead of moving them overseas to reduce costs:
No duties on imported goods that are later re-exported
Delayed payment of duties on goods that enter the U.S. market
Manufacturing-specific benefits—with case-by-case approval by the FTZ Board—that can include reduction of duties if a lower tariff rate applies to the finished product leaving the zone than the tariff rates that would have applied on foreign components (also known as an “inverted tariff”)
Elimination of duties on waste, scrap, and rejected or defective parts
Reductions in merchandise processing fees because zone users may be able to file a single-customs “entry” (and pay a single fee) per week rather than making multiple entries during the course of a week
In addition, companies are able to:
Run more efficient inventory control systems
Participate in special Customs procedures, such as direct delivery, to expedite the movement of cargo
FTZ #63 Advantages
10 minutes from the nation’s capital, Washington, D.C.
Access to a consumer market of 5.8 million people
Exceptional access to three international airports, the deep-sea Port of Baltimore, and major rail lines
Major interstate highways, including I-95 (from Maine to Miami), Route 1, Route 301, Route 50, and I-295
Significant office, warehouse, industrial, and manufacturing/distribution space
Most competitive lease/purchase rates per square foot in DC/Maryland/Virginia
Highly skilled and diverse workforce
EDC direct assistance to companies
Using a Foreign-Trade Zone
Once a zone location has been established, companies are required to “activate” the zone with U.S. Customs and Border Protection (CBP) prior to beginning FTZ operations. To begin this process, EDC staff will work with you through the following steps:
Discuss your plans for an FTZ
Perform a cost-benefit analysis to determine whether the FTZ program would benefit you
Submit a Letter of Intent to express interest in FTZ participation
Work with a consultant to ensure company’s compliance with FTZ Board and U.S. Customs and Border Protection regulations
Submit application to EDC
EDC submits application to FTZ Board
The company can begin importing as an FTZ company within 30 days of submitting completed and approved application
Learn more about:
Our international team can provide advice and guidance on the following industries and specialties:
- International Business Development Services
- Site Selection Services
- Foreign Trade Zone
- Exporting Products
- Foreign Direct Investment
- Latin Business Development Services
- Soft Landing Services for International Businesses