What is a foreign trade zone (FTZ)? What are the reasons Lutheran Brothers operates an FTZ, and how does it benefit our customers? Lutheran Brothers were designated one of the first approved general-purpose foreign trade zone sites in Detroit, Michigan, in 1985 and continue to operate under Zone #70.
By way of explanation, the Foreign Trade Zones Act, passed by Congress in 1934, was designed to expedite and encourage foreign commerce. Since their inception, these Foreign Trade Zones (FTZ) have stimulated international trade and helped create employment and investment locally rather than in a foreign country.
The Reasons Lutheran Brothers Operates An FTZ
Because we operate an FTZ, we can:
- Store imported goods
- Distribute these goods
- Process and use the imported goods without being subject to a customs duty fee
- Work with our customers to increase global competitiveness
A few of the benefits our customers reap because Lutheran Brothers is a designated FTZ facility:
- Duties are deferred, and that gives customers a competitive advantage in the reduction of duty deferral. When a customer brings products into our foreign trade zone area, duties are deferred until the goods have entered the country.
- Duties are paid when the product leaves the Lutheran Brothers warehouse facility and enters the United States. This means the products are left as finished products – not just components of larger products. This can help the manufacturer reduce the costs of raw materials.
- When a customer ships into our FTZ, the costs of filing customs entries are reduced. When a manufacturer or company ships a product into the United States, entry fees are levied and are based on the values of the goods. Fees are levied each time goods enter the country, but when our customers ship to our FTZ, the customs fees only need to be paid weekly, and this saves the shipper time and money.
Contact us if you want to learn more about the benefits of utilizing our FTZ for your goods.
When you’re looking for secure, easy-to-access, quality, experienced storage professionals, contact Lutheran Brothers.
If you are looking for clean, secure and economical warehouse space to lease and operate your business in with your own personnel, look no further than Lutheran Brothers in Detroit, Michigan.