- Incentive Website
- Incentive Status: Active
- Application Due Date: Ongoing
- Program Duration: Ongoing
Foreign-Trade Zones (FTZs) are secure areas under U.S. Customs and Border Protection (CBP) supervision that are generally considered outside CBP territory. Located in or near CBP ports of entry, they are the United States' version of what are known internationally as free-trade zones.
Under the FTZ program, the standard CBP entry procedures and payments of duties are not required on the foreign merchandise unless and until it leaves the FTZ for domestic consumption, at which point the importer generally has the choice of paying duties at the rate of either the original foreign materials or the finished product. Domestic goods moved into the zone for export may be considered exported upon admission to the zone for purposes of excise tax rebates and drawback, in essence eliminating duty payments on materials used in the manufacturing of an exported product.
In short, the FTZ program is a way to meaningfully reduce duty payments for the importing of goods used in domestic production, and can be a beneficial program to manufactures, distributors, and industrial property owners alike.
Do I Qualify?
If you are a manufacturer, logistics service provider, or real estate professional who works with industrial properties, the FTZ program may help your organization reduce costs or attract new customers.
The San Jose Economic Development Office has assisted many companies in obtaining FTZ designation, including Tesla, Lam Research, Space Systems Loral, SJ Distribution Services, and RK Logistics Group, allowing them to reduce their costs, make local production more competitive, and attract new customers
How to Apply
For more information please contact Senior Business Development Officer Chris Burton at email@example.com
Application FeesThe City of San Jose charges a nominal application fee to cover staff time in applying for and maintaining enrollment on behalf of a company.
For more information visit our website or call 408-735-4835. You can send us an email using form below.