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FTZ
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Bonded Warehouse
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TIB
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Drawback
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Duty
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Duty is paid when merchandise exits the FTZ for US consumption. May elect to pay duty at this rate of the component or that of the finished product
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Duty is collected only when merchandise is withdrawn for consumption
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Entered duty free. Importer must export or destroy merchandise within one year of import (extentions can be requested)
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Duty paid when merchandise enters the US. Must then file for a rebate, and can reclaim 99% of duty paid related to subsequent export or destruction. Refunds can take years to be received.
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Time Limits
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Unlimited storage time
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Five year storage limit
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One year time limit
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Must apply for drawback within three years of Exportation or Destruction
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Inverted Tariff
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Inverted tariff benefit possible for manufacturers
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No inverted tariff
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No inverted tariff
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No inverted tariff
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Entry into US Commerce
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Yes, all zone status goods can be entered from a zone into the US Commerce except Zone Restricted Merchandise
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No, must export manufactured products
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No, goods must be exported or destroyed
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Can be entered, but, must be exported or destroyed within five years of importation to receive duty refund.
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Foreign/Domestic Storage
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Possible to store domestic & foreign goods in same facility
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No domestic goods can be stored
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Not applicable
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May receive refunds for imported goods purchased from a domestic supplier.
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Movement of Merchandise
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Merchandise can move within the US Customs territory as well as be exported at potentially reduced duty rates
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Certain transfers are permissible between bonded warehouses and FTZ's subject to restriction.
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Merchandise can move within the US Customs territory
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Not applicable
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Arrival in US
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Once goods reach a US port they can be shipped directly to the FTZ under transportation bond
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Once goods reach a US port they can be shipped directly to the warehouse under transportation bond
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Once goods reach a US port, they can move freely within the one year time limit
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Not applicable
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Bond Requirement
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Yes, bond required on dutiable value of goods stored in facility
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Yes, bond required for each entry in addition to the property bond.
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Yes, bond is twice the entered value of most products or 110% for limited products
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Yes, a bond is required to file Drawback
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Property Tax Benefits
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19 USC 81o (e) prempts states and localities from collecting ad valorem taxes on imported tangible personal property held in a FTZ and all property held in a zone for export
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Tangible Personal Property Held for Export is exempt
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Not applicable
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Not applicable
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