Why LVGEA is the Strategic Partner for Your Foreign Trade Zone Needs

Foreign Trade Zones (FTZs) provide numerous benefits to importers and exporters, including cost savings, improved supply chain management, and increased flexibility. Companies that operate within an FTZ can defer or eliminate duties on imported goods until they are released into the U.S. market, saving money, and reducing cash flow requirements. Additionally, FTZs offer logistical advantages, such as streamlined customs procedures and the ability to store goods without incurring taxes or duties.

But why partner with LVGEA for your FTZ needs? As the grantee for Foreign Trade Zone No. 89, LVGEA’s location in Southern Nevada offers a strategic location at the crossroads of Interstate 15, U.S. Route 93, and U.S. Route 95, two Class I rail lines, and a major international airport. This allows for quick and efficient access to domestic and international markets.

In addition, LVGEA has a proven track record of success in helping companies establish and operate within an FTZ. Several companies have already taken advantage of LVGEA’s FTZ services, including Spector & Co, Optum Frontier Therapies, LLC, Las Vegas FTZ, Lithion Battery, Inc, Holda LLC, Retro Mfg, LLC, Centre Firearms, Co, Phoenix Defence, and Levi Strauss & Co.

But what exactly is a Foreign Trade Zone and how does it work?

Benefits of an FTZ

One of the most significant benefits of operating in an FTZ is the opportunity to defer or eliminate customs duties on imported goods. This can provide significant cash flow benefits for businesses, as duties are not paid until the goods leave the FTZ and enter the U.S. market. Additionally, FTZs allow businesses to store and manipulate their goods without being subject to certain customs laws and regulations, providing greater flexibility in their supply chain operations. Another benefit is the ability to streamline customs procedures, which can help reduce the time and cost associated with moving goods across international borders.

How FTZs Work

FTZs are designated by the U.S. government through the Foreign-Trade Zones Board, which is part of the U.S. Department of Commerce. Once an area is designated as an FTZ, businesses can apply for permission to operate within the zone. Businesses operating in an FTZ must follow certain regulations and procedures to ensure compliance with U.S. Customs laws and regulations. These regulations cover a wide range of activities, including importing and exporting goods, storing and manipulating goods within the FTZ, and accounting for inventory and other financial transactions.

Why Supply Chain Companies Use FTZs

Supply chain companies can benefit greatly from operating within an FTZ. By deferring or eliminating customs duties, they can improve their cash flow and reduce costs associated with importing and exporting goods. Additionally, FTZs provide a competitive advantage by lowering the costs of importing goods and components, as well as improving inventory management and logistics. For example, companies that import goods for processing or assembly can avoid paying customs duties on the imported components until the finished product is sold in the U.S. market, reducing cash flow requirements, and increasing profitability.

Strategic Southwestern US Location

FTZ No. 89’s location within Southern Nevada and the southwestern United States creates specific advantages for companies. Situated at the crossroads of several major transportation routes, including Interstate 15, U.S. Route 93, and U.S. Route 95, FTZ No. 89 provides easy access to major markets in the western United States and beyond. Additionally, Greater Vegas boasts a large and growing logistics industry, with several major distribution centers located in the area.

How LVGEA Helps

LVGEA can help companies navigate the complex regulations and requirements associated with operating within an FTZ and ensure compliance with U.S. Customs and Border Protection and other government agencies. LVGEA also provides ongoing support and resources to help companies maximize the benefits of their FTZ status.

LVGEA’s strategic location, track record of success, and expertise in FTZ operations make it the ideal partner for companies looking to take advantage of the benefits of an FTZ. By partnering with LVGEA, companies can streamline their supply chain, reduce costs, and increase profitability. Click here to learn more about LVGEA’s FTZ services.