Foreign Trade Zone (FTZ)

In the United States, FTZs are intended to encourage healthy competition with foreign businesses. These zones directly help U.S. companies that import products or components from foreign countries by:

• reducing, deferring or eliminating duties.
• allowing for greater supply chain efficiency.

When a company operates under FTZ procedures, it is treated (for purposes of customs duties) like it is located outside the United States.

San Antonio's FTZ 80

As a city committed to maximizing its presence in the global economy, San Antonio offers an ideal location for businesses looking to expand their import and export capabilities. With its engagement in international programs and its strategic geographic location, San Antonio provides a wide array of business opportunities, enhanced by its FTZ designation.

Service Area & Optimal Location

FTZ 80 consists of all of Bexar County, as well as parts of Comal and Guadalupe counties.

Foreign Trade Zone Map(PDF, 3MB)

Strategic geographic advantages include:

• crossroads of Interstates 35 and 10.
• easy access to Canada, Mexico and both U.S. coasts.
• close proximity to the ports of Corpus Christi and Houston offering direct access to international ocean shipping.

Benefits

FTZs help businesses reduce production, transaction and logistics-related costs by allowing them to defer paying customs costs on goods imported into the U.S. until those goods leave the zone and enter the U.S. market.

Benefits include:

Duty Deferral

Customs duties are paid only when goods enter the U.S. market for consumption, giving users more control over their cash flow.

Duty Exemption

No duties are paid for imported goods that are subsequently exported out or destroyed in a zone.

Duty Reduction

In inverted tariff situations, when the duty rate of a finished good is lower than on its components, users can choose to pay the lower rate with prior authorization.

Tax Savings

Goods held in zones for export are typically exempt from state or local inventory taxes.

Bundling Merchandising Processing Fees

Users can consolidate shipments and file a single customs entry per week, paying the merchandising process fee only once rather than per shipment.

The benefits of FTZs depend on individual company circumstances and their specific operations. Any company that is engaged in importing or exporting should consider the FTZ program's offerings.