First In Arizona
SKU Distribution has been designated as the first Foreign Trade Zone (FTZ) 3PL Distribution Warehouse and Fulfillment Center in Arizona. This development is a significant step in our commitment to providing top-tier logistics and supply chain solutions.
Companies that import goods always look for ways to make their supply chains more efficient. As an e-retailer, your success often hinges on your ability to balance costs and profit margins. Operating within an FTZ in Phoenix provides you with substantial cost-saving opportunities. When goods are within the FTZ, customs duties and taxes are deferred until the products leave the zone for domestic consumption. This means more money in your pocket and increased profitability.
Foreign-Trade Zones (FTZs) provide special customs procedures that help companies that conduct international business-related operations better compete with foreign plants. An FTZ also facilitates and attracts offshore activity and encourages retention of domestic activity, helping to create employment opportunities.
When you operate under FTZ procedures, your company is treated like it is located outside the United States for purposes of customs duties. That means that U.S. import duties don’t have to be paid on imported components entering your factory.
If your finished product is ultimately shipped to the U.S. market, you may have the option to pay the finished-product duty rate rather than the component duty rate — and many finished products have lower duty rates than their components or are duty-free. And if you re-export the finished product, you don’t pay duties on the component materials.
Other potential savings include avoiding duties on imported materials that become scrap as well as possible administrative savings and efficiencies.
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