The Foreign Trade Zone Act was passed in 1934 to stimulate and expedite international commerce, make U.S.-based businesses more competitive, and to create employment opportunities in the United States.
In 1950 manufacturing was permitted in Foreign Trade Zones.
In 1980 manufacturing increased significantly with Customs Regulation change that removed duty from domestic components, labor, overhead, and profit.
Fenced areas in or near a Port, deemed outside the U.S. Customs territory for customs purposes.
Goods can enter the zone without a formal customs entry or the payment of duty and excise taxes.
Established to stimulate international trade and create jobs and investment in the United States.
Duty Deferral– Customs duties and excise taxes are not payable until merchandise is released from the FTZ and enters U.S. customs territory.
Duty Elimination – Re-exported merchandise is not subject to payment of customs duties, AD/CVD, nor excise taxes.
Scrap Duty Elimination – Non-conforming merchandise can be returned to foreign supplier or destroyed under Customs’ supervision without being subject to payment of customs duties and/or excise taxes.
Direct Delivery – Available if the FTZ Operator is the owner or purchaser of the imported merchandise.
Weekly Estimated Entry – Saves on administration paperwork and Merchandise Processing Fees (MPF).
Zone Security – Must be in compliance with U.S. Customs standards. Theft of merchandise located within a zone is punishable as a federal offense, thus, zone utilization generally reduces the rate of pilferage and insurance premiums.
Tighter Inventory Record Keeping – Users must adopt inventory control procedures in compliance with Customs Regulations, which enables users to maintain tighter control over merchandise in the FTZ.
Storage of Quota Merchandise — Users can store Quota merchandise for a Quota Category that has been filled until the Quota Category reopens.
Re-marking or Relabeling Merchandise – Merchandise may be relabeled to comply with U.S. Customs requirements.
Zone Restricted Status – Merchandise placed in “Zone restricted” status is considered to have been exported for customs purposes and, if applicable, drawback can be claimed.
Inverted Tariff – Components with a higher duty rate, utilized in production of articles with a lower duty rate, can have their duty rate reduced to the lower duty rate applicable to the finished article.
Lower Valuation – The expense of labor, overhead, and profit on the finished product is not subject to customs duties.
Eliminate Duties on Exports – Articles produced in a FTZ that are re-exported without entering the U.S customs territory are never subject to U.S customs duties, AD/CVD, nor excise taxes.
Defer Duty on Production Equipment – Duty is payable when equipment becomes operational.
Zone to Zone Transfer – Articles can, in various stages of manufacture, be transferred from zone to zone.
Made in USA – Articles produced in a FTZ are considered products of the United States.
Scrap duty reduction, Weekly entry, reduction in MPF, Tighter Security, and Inventory Control.
Merchandise can be delivered to the FTZ without prior application and approval on C.F.214.
Port Director shall approve application if three criteria are satisfied:
Merchandise is not restricted or of a type which requires CBP examination or documentation review before arrival at the zone.
Merchandise to be admitted and operations to be conducted within the zone are known well in advance or are predictable and stable over the long term.
Operator is the owner or purchaser of the merchandise.
CNCIA FTZ 157 Guide
The Grant of Authority establishing the Casper/Natrona County Airport Foreign-Trade Zone (FTZ 157) was issued by the Foreign-Trade Zones Board (FTZB) to the Casper/Natrona County International Airport on January 19, 1989. There has been one expansion application that established a second General Purpose Zone Site (September 17, 2010).
Magnet Site Number – Site Name & Location – Acreage
1 – Casper/Natrona County International Airport, 8500 Airport Parkway, 492 acres
2 – Casper Logistics Hub, 6 Mile Road & Commerce Street, 984 acres
FTZ 157 was formed using a Traditional Site Framework where there is one General Purpose Zone established at the Airport.
In May of 2016, the Airport moved forward with expanding the FTZ through what is called an Alternative Site Framework (ASF), which establishes a predefined service area with Magnet Sites for business attraction and Usage-Driven/Subzone sites for companies that cannot move to a Magnet Site. Usage-Driven Sites can be established in 30-45 days vs. 2 to 5 months under the traditional site framework. Also, Usage-Driven/Subzone sites can be applied for under the ASF with no application fee vs. $4,000 – $6,000 under the traditional site framework. The Airport received notice of approval of the FTZ expansion under the ASF on July 5, 2018. The current FTZ 157 boundary encompasses nearly all Natrona County.
The FTZ Board has a tool that allows those interested in a FTZ to determine the potential FTZ duty savings using a Duty Savings Estimator Worksheet for FTZ production.
FTZ Duty Savings Calculator
Glenn S. Januska, A.A.E.
Casper/Natrona County International Airport
8500 Airport Parkway
Casper, WY 82604
307.472.6688 ext. 212
Foreign-Trade Zones Board
U.S. Department of Commerce
1401 Constitution Ave., NW, Room 21013
Washington, DC 20230