Defer (Park) Tariffs For a While With a Foreign Trade Zone

©iStock/werny

The U.S. has roughly 260 foreign-trade zones (FTZs) that allow them to defer tariffs on imported goods and materials, for a while.  Think of it as parking your import in a tax-free foreign trade zone until you are ready to release it.  Good way to manage your cash flow.

Foreign trade zones and bonded warehouses are specially designated, secured storage or manufacturing sites approved by U.S. Customs that allow for the temporary avoidance of tariffs.

Since the start of Trump's trade war, more companies started looking to FTZs, and membership has surged to an all-time high.

from The Global Small Business Blog https://ift.tt/dF2vte3