River, road, rail and runway have long been recognized as strategic advantages for Memphis based companies. But now, several innovative manufacturers, including Sharp Manufacturing, Cummins, and Brother Industries, are using another source to maximize their presence in the world marketplace – Foreign Trade Zones.
Foreign-trade zones (FTZ) are designated sites licensed by the Foreign-Trade Zones (FTZ) Board where special Customs procedures may be engaged. FTZs provide companies relief from federal tariffs and reduce federal merchandising fees and taxes. The FTZ designation allows foreign merchandise admitted into the FTZ to be perceived as being in the stream of international commerce and therefore not subject to customs duties, government excise taxes or import quotas. Only when the final product is transferred from an FTZ and formally enters into U.S. commerce are tariffs due. If the final product is exported from the U.S., no duties or taxes are levied.
EDGE is the Administrator of Foreign-Trade Zone (FTZ) No. 77, which includes sites at the Port of Memphis, southeast Memphis, the Memphis Depot Business Park, and others throughout Shelby County.
Adding to Memphis and Shelby County’s logistical opportunities, FTZs provide cost savings benefits to participants, bring international trade related jobs, and millions of dollars of capital investment to the community. Combined, nearly $1.5 billion worth of goods flow though the Memphis and Shelby County FTZ, which help make Memphis and Shelby County an even stronger player in the business of international trade.