Foreign
Trade Zone
Focus: Companies that import products or parts internationally
Allowances to delay, reduce, or eliminate import taxes.
Foreign
Trade Zone
Focus: Companies that import products or parts internationally
Allowances to delay, reduce, or eliminate import taxes.
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About Foreign-Trade Zone 77
Foreign-Trade Zone (FTZ) No. 77 covers all of Shelby County.
What is a Foreign-Trade Zone?
Foreign-Trade Zones (FTZ) allow companies importing products or parts from other countries to delay, and in some cases, reduce or eliminate the taxes (import duties) that would otherwise be owed when those products/parts enter the U.S.
In the United States, a foreign-trade zone is a geographical area in or adjacent to a United States Port of Entry, where domestic and foreign commercial merchandise receives the same Customs treatment it would if it were outside of the US. The purpose of such zones is to help companies remain competitive globally by reducing tariff burdens on the importation of foreign parts and on exported products.
Company Benefits
- Duty Deferral
- Duty Reduction or Exemption
- Streamlined Customs Procedures
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- Financial savings
- Inverted Tariff
Activity Permitted in FTZ Zones
Merchandise may be:
- Assembled
- Exhibited
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- Cleaned
- Manipulated
- Manufactured
- Mixed
- Processed
- Relabeled
- Repackaged
- Repaired
- Salvaged
- Sampled
- Stored
- Tested
- Displayed
- Destroyed
Public Benefits
- Help facilitate and expedite international trade.
- Provide special customs procedures as a public service to help firms conduct international trade related operations in competition with foreign plants.
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- Encourage and facilitate exports.
- Help attract offshore activity and encourage retention of domestic activity.
- Assist state/local economic development efforts.
- Help create employment opportunities.
FTZ Info & Application
Vital Statistics
In 2021, total zone and subzone employment in the Memphis FTZ increased from 1,593 in 2020 to 1,845 in 2021. Warehouse and distribution employment increased by 68 employees from 1,283 in 2020 to 1,547 employees in 2021. The percentage of total warehouse shipments that were directly exported increased from 9 percent in 2020 to 37 percent in 2020. The increase in employment and the export increases show that the Memphis FTZ projects were able to positively maintain their businesses during the 2020-2021 pandemic.
