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The purpose of the FTZ program, since its inception in 1934, is to expedite and encourage foreign commerce within the United States. FTZ No. 46 and No. 47 is a business operations focused federal program designed to help regional businesses compete in the global marketplace through the elimination, deferral or reduction of customs duties on imported and exported/re-exported merchandise.
A foreign-trade zone (FTZ) is a geographical area in the United States where commercial merchandise — both domestic and foreign — receives the same Customs treatment it would if it were outside the commerce of the United States. Merchandise may be held within a FTZ without being subject to tariffs (customs duties) and other ad valorem taxes, providing tariff and tax relief to U.S.-based operations engaged in international trade. Two foreign trade zones are located in the Greater Cincinnati area.
Foreign Trade Zone 46 (Cincinnati and Southwest Ohio)
The types of warehousing and distribution activities found within FTZ 46 include the distribution of civil aircraft engine modules and containers, the production of engines for automobiles, and related parts and accessories; and aircraft/spacecraft and manufacturing and machine assembly operations. All FTZ 46 operators reported increases in the value of Merchandise Received and Merchandise Forwarded over the prior year.
Foreign Trade Zone 47 (Northern Kentucky)
The types of warehousing and distribution activities found within FTZ 47 include the distribution of civil aircraft and marine engine modules and containers, the production of petroleum products; and distribution of various textile products. All FTZ 47 operators reported moderate to significant increases in the value of Merchandise Received and Merchandise Forwarded over the prior year.
Foreign Trade Zones offer a number of benefits for manufacturers and distributors heavily involved in importing. From duty reduction, elimination, and deferral to savings on weekly entry, FTZs can provide significant advantages. Learn more about the benefits here.