Yakima Valley Companies can get Foreign Trade Zone Status

Foreign Trade Zones provide multiple benefits that mean real savings for a business’s bottom line. The primary benefit is that commercial merchandise, both domestic and foreign receives the same Customs treatment it would if it were outside the commerce of the United States. Merchandise of every description may be held in the zone without being subject to tariffs (customs duties) and other ad valorem taxes. This tariff and tax relief is designed to lower the cost of U.S. based operations engaged in international trade.

Additional benefits of a foreign trade zone include:

  • Spare Parts: Spare Parts can be held in a zone without U.S. Customs duty payment, generating cash flow savings – Obsolete parts can be destroyed in the zone without duty payment
  • Quota Restriction Avoidance: Imported quota merchandise can be warehoused in the zone duty free until the next quota period opens
  • Temporary Removal: Imported goods can be removed from the zone for 120 days while under bond for exhibition or repair
  • Reduced Inventory Taxes: Goods imported and warehoused in a zone, as well as tangible personal property produced in the U.S. and held in the zone for export, are not subject to state and local value-added taxes
  • Duty Reduction or Elimination: Goods can be manipulated or manufactured into something that has a lower exempt classification
  • Damaged, Destroyed or Waste: Duties can be avoided on defective or damaged goods by inspecting and testing imported goods within a zone
  • Foreign Trade Zone Weekly Entry: Entry and Merchandise Processing Fee (MPF) are paid weekly inside a zone, rather than daily, saving time as well as brokerage fees

Foreign Trade Zone status is available to companies in the Yakima Valley through the Port of Moses Lake’s Foreign Trade Zone #203. The zone covers most of Central Washington and has its own Customs Officer.

For more information, contact Jonathan Smith or Jean Brown at 509-575-1140.

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