The Santa Teresa Business
Center falls within Foreign-Trade Zone No. 197. Products brought
into a foreign-trade zone are afforded privileges with regard to US Customs
policies that can result in dramatic operational cost savings. These
privileges are summarized as follows:
- Under the Foreign-Trade Zone Act, foreign and
domestic merchandise may be admitted into a foreign-trade
- Formal Customs entry
- Payment of Customs duties
- general US quota restrictions
- payment of government excise taxes
- thorough examination
- Merchandise brought into a foreign-trade zone may be:
- If the merchandise is re-exported no US customs or excise
tax is ever paid.
- If the merchandise is imported into the US but outside of
the foreign-trade zone, US Customs duties and excise tax are
due at the time the merchandise is physically removed from the
foreign-trade zone. The duty paid is at the rate of the finished
product or imported parts whichever is lower.
Importing merchandise into a
foreign-trade zone can offer many cost and logistical benefits including
- Imported merchandise can be stored for an indefinite time
period and displayed for potential buyers ensuring a sufficient
quantity of marketable merchandise will be available for sale.
- Imported merchandise can be counted, weighted, tested, repaired,
or destroyed prior to the payment of customs duty, ensuring an accurately
invoiced quantity of sellable merchandise is brought to market.
- If imported merchandise will be subject to a quota, such merchandise
can be manipulated or processed in such a manner so as to create a
product not subject to a quota.