Foreign Trade Zone 289 (FTZ 289)
WHAT IS A U.S.FOREIGN-TRADE ZONE? A Foreign-Trade Zone is a site in or near a U.S. Customs Port of Entry where foreign and domestic merchandise can be shipped to, for storage, manufacturing, processing, labeling, etc. Merchandise in the Zone is considered outside of the country for Customs duties and excise tax purposes only. Customs duties and excise taxes are due only when the goods leave the Zone for domestic consumption. Goods which remain in the Zone or are exported to international markets are not subject to US Customs duties and taxes. The site is monitored by the sponsor business users, the Service Area Grantee, as well as the local Custom Border Protection agency. Business users must still adhere to local, state and federal law.
FTZ 289 was established in 2014 through the efforts of Ontario County Economic Development and is now administered by the Grantee, Ontario County. Businesses within the five-county Service Area of Ontario, Wayne, Seneca, Yates, and Livingston counties may apply to establish subzones or magnet sites within any of these five counties.
KEY BENEFITSThere are several ways that businesses can benefit from operating in a Foreign-Trade Zone, including:
- Cost savings on Duty Deferral or Duty elimination on imports
- Duty Reduction on imported items for production/or export purposes.
- Duty elimination on scrap.
- Administrative cost savings on customs entry and processing fees (MPFs) through Weekly Entry.
- Direct deliver can streamline the travel time from port of entry to established subzone.
- Zone users have tighter security and inventory control procedures.
- Zone-to-Zone Transfers allow for products to move duty-free between zones within the U.S.
- There is no time limit on duration of stay for merchandise that is warehoused in the FTZ.
- Click here for description of allowed activities and benefits in a FTZ.
STEPS TO EXPLORE FTZ 289 FURTHER These three basic steps will provide your company with enough information to decide on whether it is beneficial to establish a subzone within FTZ 289.
- Is your company (or new site) within one of five FTZ 289 Participating Counties shown below? If so, contact your local economic development specialist and ask for the FTZ 289 Questionnaire.
- Refer to Key Benefits listed above and consider the cost saving option specific to your business. Complete the FTZ 289 Questionnaire and ask to review this information with your county economic development specialist and a FTZ representative. This preliminary review will identify cost savings potential. An FTZ Savings Estimator tool can also be utilized to determine cost savings.
- If significant savings can be realized, in cooperation with your county specialist, contact FTZ 289 Representative in Ontario County 585-396-4866 or firstname.lastname@example.org to formally request the 12-question site application. Zone Applications must be submitted to and processed by Ontario County as Grantee. Applications can be approved in as few as 30 days. Operations may commence once the site is approved by Customs and Border Protection.