POS_FTZ#52010_Print.pdf  1  8/25/10  2:47 PM



Foreign Trade Zone #5
C                                                               Your Competitive Edge

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The Port of Seattle's Foreign Trade Zone (FTZ) #5 can give
your company a competitive edge and help manage cash flow
by deferring, reducing and in some cases eliminating customs
duties and reducing overall operating costs.



Port of Seattle. Where a sustainable world is headed.

POS_FTZ#52010_Print.pdf  2  8/25/10  2:47 PM

FTZ ADVANTAGES
Defer customs duties and federal excise
taxes until merchandise is transferred from
the FTZ to domestic market customs
territory of the U.S. or a North American
Free Trade Agreement (NAFTA) country
(Canada or Mexico).
Reduce processing/entry fees by as
much as 85 percent with the Weekly Entry
Process, which allows goods to be shipped
24 hours a day, seven days a week, with
just one entry filed each week and just one
Merchandise Processing Fee per entry.
ALTERNATIVE SITE FRAMEWORK                  Reduce customs duties on goods
Gaining FTZ status is now faster and easier under the Port's Alternative Site Framework        processed or assembled in the FTZ when
(ASF), recently approved by the U.S. Department of Commerce. The ASF allows businesses     imported components have a higher duty
in the Seattle area engaged in importing, exporting, assembly, warehousing and distribution      rate than the finished goods (see scenario
#2, below left).
to apply for expedited approval through the Port's FTZ program.
Defer Harbor Maintenance Tax payments
FTZ #5 REDUCES COSTS                       and pay quarterly instead of at time of entry.
There are a number of ways FTZ #5 can reduce operating costs and enhance your
company's bottom line. The Weekly Entry Process and assembly of imported components     Eliminate customs duties entirely when
goods are re-exported from the FTZ.
in the FTZ are just two examples.
Store quota merchandise in the FTZ until
Cost Savings Scenario #1 - Weekly Entry Cost Savings                   the quota period opens and immediately
The Weekly Entry Process available to companies operating within the FTZ can result in         ship goods into U.S. Customs and Border
C          savings of up to 85 percent on entry and processing fees. Entry and Merchandise Processing         Protection territory.
Fees can be paid weekly, rather than per entry, saving time and brokerage fees.
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Exempt imported goods from state and
160 entries per year at $485 ................................................................................................$77,600
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52 entries per year at $485 ..................................................................................................$25,220
CM          Annual savings.....................................................................................................................$52,380             held in the FTZ for storage, sale, exhibition,
repackaging, assembly, distribution,
MY                                                                                                              sorting, grading, cleaning, mixing, display,
Cost Savings Scenario #2 - Savings on Duties through Assembly in FTZ        manufacturing or processing. Goods
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A company that sells first aid kits imports most of the kit components from Asia  items like         manufactured in the U.S. and held in the
CMY          bandages, gauze pads, cold packs, tape, scissors, tweezers, rubber gloves, metal cases, etc.          FTZ are also exempt.
The kits are assembled in the U.S. Most of the components have import duty rates of two to
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three percent. The duty rate for the metal boxes is 17 percent, but the import duty rate for          Eliminate the need for drawback and
complete first aid kits is zero.                                                       keep funds in the operating capital of
the company.
Annual value of kit components..................................................................................$10,000,000
Averaged duty rate of components ......................................................................................... 10%
Annual Duty savings from assembly in FTZ.................................................................$1,000,000
The same kinds of advantages can apply to a wide range of companies, especially manufacturers
that import components or materials for processing or assembly in the United States.
The Port of Seattle is the Green Gateway
For more information contact:                        for cargo moving between Asia and the
American Heartland, with lower carbon
Oshu Go                or  Jeff Marcell               emissions throughout the supply chain.
Director,                         President & CEO
Learn more at www.portseattle.org/
Asian Business Development         Enterprise Seattle
seaport/cargo/GreenGateway.shtml
Port of Seattle                    206-389-8654
206-787-3271                  jmarcell@enterpriseseattle.org     SEATTLE ADVANTAGES
go.o@portseattle.org                                        The closest U.S. Port to Asia, Seattle has
on-line: www.portseattle.org/business/ftz.shtml                         excellent road and rail connections to key
markets across North America, making it a
natural location for national and regional
Port Commission: Tom Albro         warehousing and distribution activities.
Bill Bryant
John Creighton       More than 20 ocean carriers serve the
Rob Holland        Port and the BNSF Railway and Union
Gael Tarleton         Pacific Railroad offer four-day service to
Chicago from Seattle.
Chief Executive Officer: Tay Yoshitani
The Port's Foreign Trade Zone is a perfect
P.O. Box 1209  Seattle, WA 98111                                            complement to the region's trade and
www.portseattle.org                                                 transportation advantages.