Post on 29-Nov-2014
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Foreign Trade Zone # 22
“Duty Free Shopping”
For
Chicago’s Industrial Economy
Foreign Trade Zone Formation
• Created by Department of Commerce Foreign Trade Zone Board
• Managed by Customs and Border Protection Service
• Local Police, Fire Protection and Other Regulatory Agencies Have Jurisdiction
Types of FTZ Operations
• General Purpose: Multiple user warehouse and distribution operations
• Subzone Operations: Single user manufacturing operations
FTZ Operation Benefits
• Duty exemption for re-exported goods
• Duty deferral for imported goods
• Inverted tariff on manufactured goods
• Just In Time inventory control
• Exports avoid local inventory property taxes
Permitted FTZ Activities
• Assembly• Exhibition• Manufacturing• Mixing• Processing• Relabeling• Repackaging• Repairing
• Salvaging• Storing• Testing• Destruction
Allowed Zone Locations
• Within Chicago Port of Entry
• Within 60 miles of Port of Entry Boundary
• Within 90 minutes Driving Time of Boundary
Typical FTZ # 22 Users
• Automotive manufacturing
• Aviation electronics manufacturing
• Consumer electronics distribution
• Petroleum refining
• Pharmaceutical manufacturing