The City of Fort Lauderdale Executive Airport has launched an exciting new program to establish a Foreign-Trade Zone in northern and western Broward County.

A Foreign-Trade Zone is part of an attractive federal program to defer, reduce, or even eliminate costly Customs duties on products you import into the U.S. Companies currently importing goods and paying Customs duties are invited to participate and take advantage of this program.

Subzone status can also be granted through for sites located outside the pre-approved areas. A Subzone is operated by the individual firm through a separate application to the Foreign-Trade Zones Board and an agreement with the City of Fort Lauderdale.

What is a Foreign-Trade Zone?
A Foreign-Trade Zone (FTZ) is an area that, for U.S. Customs purposes, is considered to be in international commerce. Any foreign or domestic material can be moved into an FTZ without being subject to U.S. Customs duties. A Zone is operated as a public venture sponsored by a local municipality or authority.


Why do companies use FTZs?
Companies utilize FTZs in order to reduce operating costs associated with a U.S. location that are avoided when operating from a foreign site. This cost reduction allows firms to maintain cost competitiveness in their U.S. based operations.


Why do communities sponsor and develop FTZs?
A local community benefits from the increased business attraction and retention opportunities a Zone offers. FTZs provide an attractive climate in which to do business and thereby encourage domestic companies to expand and/or to retain operations in the U.S. that would otherwise be relocated overseas. The overall result is more jobs created in the local area.

Basic Advantages of Foreign-Trade Zones:

• Import duties are not paid until the goods leave the Zone.
• Re-exported goods are never entered into U.S. commerce and are not subject to Customs duty.
• No duty is paid on scrap, waste, or damaged goods.
• The company has the use of the duty dollars for the time the goods are in the FTZ.
• The final duty rate paid is that of the component part or of the finished article, whichever is lower.
• Products transferred from Zone to Zone are duty free.
• Most merchandise subject to quotas may be held in a Zone until quotas open.
• Customs review of security procedures and Federal laws governing unauthorized removal of Zone merchandise deter theft.
• Due to increased security, discounted cargo insurance rates (up to 40% less) have been negotiated.

FTZ Facts:

• 90% of firms using FTZs are U.S. based.
• 80% of merchandise received in FTZs is of domestic origin.
• Over 2,900 firms use FTZs.
• Over 290,000 people are employed in U.S. FTZs.
• Exports from FTZs exceed $17 billion.
• Forty-nine states plus Puerto Rico have established FTZs.
• There are 230 Foreign-Trade Zones and 407 Subzones in the U.S.
• The FTZ Act of 1934 was a "New Deal" law introduced to expedite and encourage U.S. participation in international trade.
• The FTZ program operates with minimal expenditures of tax dollars. U.S. Customs oversight and enforcement are reimbursed through merchandise processing fees.
• Zones encourage firms to locate final assembly operations in the U.S. rather than abroad and discourage domestic firms from relocating offshore.

For Additional information on the City of Fort Lauderdale Foreign-Trade Zone, please contact Clara Bennett at (954) 938-4966, or by email at ClaraB@ci.ftlaud.fl.us

Click here to download a FTZ Informational Brochure.