Key FTZ Benefits:

–Inverted Tariff – Many pharma raw materials carry a higher duty rate than finished product

–Duty elimination on scrap and yield loss

–Increased delivery speed through direct delivery

–Speed to Market – Allows production and storage of product awaiting FDA approval

Example:

Pfizer and the role of FTZs in the COVID-19 Vaccine:

Without an FTZ, drug products cannot be imported without FDA approval. With FTZs, Pfizer was able to import and store inventory, and then speed delivery to market upon approval, saving transit time and uncertainty.