A Foreign Trade Zone (FTZ) is a secure, designated area within the United States, treated as being outside of U.S. Customs territory.

This allows companies to:

• Defer, reduce, or eliminate customs duties, taxes, and fees on imported goods.
• Store, manufacture, or process goods for an unlimited period.
• Improve cash flow and streamline supply chain operations.

In Puerto Rico, FTZs also offer the added benefit of deferring or eliminating (on exports) the 11.5% IVU (Sales & Use Tax) on imports and exports.

While retail sales are prohibited, a wide range of activities are permitted within an FTZ. This includes:

• Processing & Manufacturing: Manufactured, assembled, processed, mixed, or cleaned goods.
• Handling & Storage: Stored, displayed, sampled, or repackaged merchandise.
• Quality Control & Compliance: Tested, repaired, salvaged, or relabeled products.
• Disposal: Destroyed (with duty savings) merchandise.

Using an FTZ can provide significant financial and logistical advantages, including:

• Financial & Tax Benefits: Duty Exemption: No duties on goods re-exported from the FTZ.
• Duty Deferral: Pay duties only when goods leave the zone and enter the U.S. market, improving cash flow.
• Inverted Tariff: Pay the duty rate of the finished product, which may be lower than the rate on individual components.
• Merchandise Processing Fee (MPF) Reduction: Pay a single weekly entry fee instead of a fee per shipment.

In Puerto Rico, additional benefits include:

• No Property Tax on inventory and equipment.
• No “Patente” Tax on exports to foreign destinations.

Logistical & Operational Benefits:

• Streamlined Logistics: Reduce delays with U.S. Customs and Border Protection (CBP).
• Quota Avoidance: Imported goods subject to quotas can be held in a zone until the next quota period begins.
• Unlimited Storage: Store goods for an unlimited period, unlike in a bonded warehouse.
• Improved Inventory Control: Better security and oversight lead to reduced costs and enhanced compliance.

We simplify the process of using an FTZ. We provide:

• FTZ-Qualified Warehousing: Secure and compliant storage for your goods.
• Precision Inventory Management: Our system ensures 99.99% accuracy.
• Comprehensive Support: We handle all compliance, documentation, and regulatory processes, allowing you to focus on your business growth.

Yes. The FTZ program in Puerto Rico is highly flexible. You can store goods intended for local sales, regional distribution, or export, all while taking advantage of the financial and logistical benefits of the program.

No, there is no time limit. Merchandise can be stored indefinitely within a Foreign Trade Zone. This allows you to defer duties and excise taxes until the goods are ready to be shipped or sale.

Not at all. We support businesses of all sizes, from growing brands to established operations. We tailor our services to meet your specific needs, volume, and budget.

Any industry that imports or exports goods can benefit from the financial and logistical advantages of an FTZ. We have extensive experience with: Consumer Products, Electronics, Automotive Parts, Medical Supplies, Apparel & Footwear

We are especially helpful to companies looking to optimize their supply chain, reduce costs, and enhance visibility.

Absolutely. Our team includes experts in customs brokerage and FTZ regulations. We serve as your trusted partner to ensure all documentation, reporting, and compliance processes are handled smoothly and accurately. We help you navigate the complexities so you can remain compliant and avoid costly errors.