We are excited to announce that on February 22, 2019 the Los Angeles City Council approved Toolots, Inc. to be a Foreign Trade Zone General Purpose Operator.
What is a Foreign-Trade Zone?
Foreign-Trade Zones (FTZ) are a federal economic incentive program to bring international trade within the capability of even the smallest of businesses. FTZs are designated sites within the U.S. where foreign and domestic merchandise is considered to be outside the U.S. Customs territory. The program is designed to lower the cost of doing business and stimulate economic growth and development in the U.S. by allowing companies to defer, reduce or eliminate U.S. Customs duties. Certain types of merchandise can be imported into a Zone without going through formal Customs entry procedures or paying import duties until the products are transferred from the FTZ for U.S. consumption. If merchandise never enters the U.S. commerce or is re-exported to other countries, then no duties are paid on those items. This program was developed to offer U.S.-based facilities with the ability to compete on a more level playing field with offshore locations.
Business Benefits Available Within Foreign-Trade Zone 202
- Designated Service Area, which includes all of Orange County and large portions of Los Angeles and San Bernardino Counties
- Businesses can receive FTZ designation in an expedited manner under the ASF structure
- Your organization can benefit from increased cash flow and inventory control
- Many of the top names in fashion and household goods operate warehouses within FTZs as a means to reduce operating costs, improve supply chain velocity and manage security at distribution facilities
- Defer, delay or eliminate payment of some duties, merchandise processing fee, and harbor maintenance fee
