Learn More About the Laws and Regulations on Duty, Tax and Fee Recovery

Duty Drawback and Foreign Trade Zones

Customs duties must be paid to the government, but they may not need to be at a traditional or standard rate. Duties may be significantly reduced or deferred in various ways and the methods to do so are offered through various government programs. One must know where to look, how to find it, and how best to implement it. Besides duty drawback, another effective program is a Foreign Trade Zone.

A foreign trade zone is a facility or location federally designated as being outside the commerce of the U.S. It is designed to create jobs in the U.S. and to offer U.S. companies a competitive edge over foreign companies due to reduced duties and other benefits. For example, a foreign trade zone may avoid duty for imported goods destined for export; defer duty payment for goods until it is shipped to the customer; lower the duty rate based on its manufacturing process; consolidate its payments to Customs weekly and much more.

While the two programs are separate in nature and regulated differently, Stroth has creatively and effectively combined both programs - duty drawback and foreign trade zones - so that its clients may enjoy the best of both worlds.