What is a Foreign Trade Zone (FTZ)?

A foreign trade zone is a tax-free business environment for international trade that provides cost savings and convenience for companies using the South Bend Foreign Trade Zone #125.

Foreign parts and domestic materials may be combined into a finished or semi-finished product. Duty is generally lower on finished goods with some foreign content than on foreign parts introduced directly in the domestic market. Using domestic rather than foreign goods may add to your duty savings.

Advantages of a Foreign Trade Zone

For the exporter, the South Bend Foreign Trade Zone offers more conveniences and saves you time and money through duty reduction or exemption, value-added savings, and incentive for more exporting.

Commercial and Industrial Markets of Chicago, Detroit, Cleveland, and Indianapolis are easily reached from the South Bend Foreign Trade Zone. Rail, air, piggyback and nearby deep-water ports are just a few of the features of the Zone that mean reduced overhead and lower transportation costs.

 

Taking Advantage of FTZ #125

Located on I-80/90, the principle U.S. truck route, the South Bend Foreign Trade Zone places you at the center of a major Midwestern transportation hub. 

  • Imports are landed then quickly moved into the Foreign Trade Zone without full customs processing.
  • U.S. duty, applicable internal revenue taxes, quota restrictions, and bonding, do not apply to goods held in the Foreign Trade Zone.
  • Duty is owed only when the goods are removed from the Zone.
  • Assembly, processing, and manufacturing, may occur in the Zone at cost savings. Many other activities are also permissible.
  • Processed or manipulated goods may qualify for lower duty freight charges.
  • Imported goods qualify for the "Made in the USA" label if value added in the Zone is substantial.
 

Companies using the Foreign Trade Zone may:

  • Relabel
  • Manufacture
  • Process
  • Destroy
  • Clean
  • Manipulate in some fashion
  • Assemble
  • Store
  • Re-export
  • Repackage
  • Salvage
  • Test
  • Repair
  • Label
  • Sample