The Village of Los Lunas is Part of a Foreign Trade Zone
Along with Valencia County, Los Lunas is within a Foreign Trade Zone (FTZ). An FTZ is defined as an isolated area adjacent to an international port of entry (the Sunport is a port of entry) where an industry can store, repack, sort, mix, or perform value-added manufacturing with foreign goods without being subjected to import duties (taxes).
What are the FTZ Benefits?
- Duty Exemption on Re-Exports
If the final product is exported, you avoid paying tariffs on imported parts, components, and materials.
- Duty Deferrals
If the final product is sold in the U.S., you may defer tariffs until the sale, having a cash flow benefit.
- Relief from Inverted Tariffs
It is your final product that is declared for importation/sale in the U.S. market – not the sum of the individuals’ parts and components.
- Duty Elimination on Waste, Scrap, and Yield Loss
You aren’t declaring imported materials until after you have used them; keeping you from paying duties on what was not used in the manufacturing process.
- Weekly Entry Savings
Companies operating under an FTZ can file weekly entry procedures. You pay the merchandise processing fee only once for the week, rather than on every shipment.
Minimum of $25, max of $485.
The Foreign Trade Zone is a catalyst to attract Manufacturing Economic-Base Industries to Los Lunas!
Source: International Trade Alliance