FOREIGN-TRADE ZONE SERVICES AT THE PHILADELPHIA REGIONAL PORT AUTHORITY

Foreign-Trade Zones (FTZs) were created to neutralize negative U.S. tariff impact on products used by manufactures operating in the United States and to keep U.S. businesses competitive with businesses operating offshore or overseas. Though the benefits of operating in a FTZ vary, they are substantial, and are certainly worth investigating.

A Foreign-Trade Zone is a duty-free, quota-free, secured area in a designated customs "port of entry," considered outside U.S. Customs territory. Within a zone, foreign goods can be brought into the United States without formal customs entry for warehousing, assembly, manufacture, display, destruction or other processing. Duty payments can be deferred, reduced or eliminated when an FTZ is utilized.

The Philadelphia Regional Port Authority (PRPA) is the grantee of FTZ #35 which covers Southeastern Pennsylvania.

A General Purpose Zone normally has indoor and outdoor storage space used by a number of companies. There is one General Purpose Zone in the Philadelphia region. This site is in close proximity to local marine terminals and airports. PRPA’s staff is continually working with companies interested in establishing a zone or using the General Purpose Zone.

Sub-zones, on the other hand, can be established for individual companies conforming with the regulations of the Foreign-Trade Zones Act. Savings on duty and other costs can be significant if imports are modified within the zone. Companies wishing to establish a sub-zone must submit, together with the PRPA, an application to the FTZ Board in Washington, D.C.

For further information on establishing a Foreign-Trade Zone or using the PRPA’s existing sites, please contact David Harvey at 215.426.2600