FOREIGN TRADE ZONE #255
WHY IS THIS AT
Fort Ritchie is a decommissioned National Guard and Army Post which operated from 1926 to 1998. Zone 255 at Fort Ritchie is considered a Traditional Site Framework (TSF) and is designed to serve zones that are focused on attracting FTZ activities to a limited number of fixed FTZ sites that serve multiple users such as port or airport facilities. Operations within this zone are overseen by the local U.S. Customs and Border Protection (CBP) office.
A Foreign-Trade Zone( "FTZ" or "Zone") is a site within the United States that is legally considered to be outside of Customs territory for the purpose of duties and other considerations
HOW DOES IT WORK?
"Certain types of merchandise can be imported into a Zone without going through formal Customs entry procedures or paying import duties. Customs duties and excise taxes are due only at the time of transfer from the FTZ for U.S. consumption. If the merchandise never enters the U.S. commerce, then no duties or taxes are paid on those items."
-NAFTZ (National Association of Foreign Trade Zones
Foreign Trade Zones allow for the logistics process to be expedited while goods are waiting to complete the entire customs declaration process. Upon approval from Customs, imports may be directly delivered to the zone. It allows companies to request permission to break and affix Customs seals.
In most instances, imports subject to quota may be retained within a Foreign-Trade Zone once a quota has been reached allowing zone users access to potentially discounted inputs and the ability to admit merchandise as soon as a new quota year starts. Inputs subject to quota may be manipulated or manufactured while in the zone into a product not subject to a quota.
Merchandising Process Fee Reduction (MPF)
Companies operating in an FTZ can settle their Merchandising Process Fee (MPF) once in a consecutive seven-day period, instead of for every shipment. Typically, 0.3464% is charged on the Total Estimated Value of the shipment.
There are no duties due or quotas on items that are re-exported from the FTZ. Excluding Mexico and Canada. Certain duty exemptions exist on goods that are destroyed in the Foreign Trade Zone, which is exceptionally good if your manufacturing process results in a lot of scrap.
Duty Reduction (Inverted Tariff)
Where zone manufacturing results in a finished product that has a lower US Harmonized Tariff rate than the rates on foreign inputs, the finished product may be entered into the U.S. Customs territory at the duty rate that applies to its finished condition. Moreover, duty is not owed on labor, overhead or profit attributable to zone production operations.
WHY FORT RITCHIE?
BUILD TO SUIT
Fort Ritchie's FTZ Model works directly with producers to ensure that spaces needed are built to suit to ensure commerce needs are met.
Site: Fort Ritchie at Cascade - Being developed as a mixed-use property at the former Fort Ritchie military base. Zone #255 offers amenities including rail, airport runway access, municipal water/sewer and propane.
Close proximity to I-70, I-81, and US-15. Move merchandise directly to the factory or warehouse with no clearance delay.
Zone 255 at Fort Ritchie is considered a Traditional Site Framework (TSF) and is designed to serve zones that are focused on attracting FTZ activities to a limited number of fixed FTZ sites that serve multiple users such as port or airport facilities. Operations within this zone are overseen by the local U.S. Customs and Border Protection (CBP) office.
The Mid-Atlantic Sweet Spot
Fort Ritchie is situated in an ideal location to connect with major US Highways. A short 10 minute drive to US-15 and an 18 minute drive to I-70. Fort Ritchie is approximately 75 minutes from ports in Baltimore and Washington DC. Other major cities include Pittsburgh and Philadelphia in three hours, and New York City's metropolitan center only four hours away.