- Port San Antonio:
- Located at the former Kelly Air Force Base, now repurposed and redeveloped
- Easy access to both Interstates 35 and 10
- 1,900-acre site featuring an industrial airport, a railport, an on-site U.S. Customs office, and mixed-use development
Essentially, foreign trade zones help businesses reduce production, transaction, and logistics-related costs by allowing them to defer paying customs costs on goods imported into the U.S. until those goods leave the zone for consumption. Benefits include duty deferral, duty exemption, avoiding inverted tariffs, and logistical benefits.
FTZ Operation Types
- Storage: Foreign and domestic merchandise may be stored within the zone for an unlimited period of time, thereby avoiding all duties and excise taxes.
- Approved operations for admitted merchandise: Goods may be opened, examined, sampled, displayed, assembled, mixed, cleaned, labeled, or repackaged within a zone.
- Manufacturing: products manufactured within the zone, including foreign merchandise, can face reduced duties if the tariff rate on the finished product (the product leaving the zone) is lower than the tariff applied to the initial components (the product entering the zone).
- Disposal: Waste materials and damaged or valueless merchandise can be destroyed within the zone without encountering duties.
Benefits for Foreign Trade Zone Users:
- Avoid payment of duties on imported goods that are later re-exported or are used in manufacturing domestic goods
- Delay payments of duties on goods that enter the U.S. market
- Eliminate duties on waste, scrap, and rejected/defective parts
- Reduce or eliminate duties on quota charges for merchandise leaving the zone
- Avoid quota restrictions until merchandise leaves the zone
- Reduce merchandise processing fees, since zone users are allowed to file a single customs entry—and pay a single fee—per week, instead of filing and paying per entry
For more information, please contact:
Sr. Economic Development Specialist