Port of Entry #1412 & F.T.Z. #238
An international Port of Entry and Foreign Trade Zone have been established in the New River Valley. The Port of Entry, serving a geographic area within 90 miles in all directions from the New River Airport in Pulaski County, and the FTZ, were developed jointly to save time and money for those companies and individuals in the region doing business outside of the United States.
What is a Port of Entry?
Ports of entry are responsible for processing conveyances, passengers and goods entering and exiting the United States and enforcing customs laws.
Goods may be entered for consumption, for warehousing at the port of arrival, or transported in-bond to another port of entry and entered there under the same conditions as at the port of arrival. Transporting imports in-bond to the Port of New River Valley saves importers considerable time and money, or New River's Customs officer can travel to the Port location for entry.
The Port of New River Valley has a U.S. Customs Officer on location to process import/export goods, as well as an Independent Customs Broker to help with entry and bonding as necessary.
What is a Foreign Trade Zone?
A foreign trade zone is a secure and enclosed area, located near or in a Port of Entry. An FTZ is considered to be outside U.S. customs territory, so that foreign and domestic materials or merchandise may be moved into it without being subject to U.S. customs duties, until the goods enter U.S. commerce. When merchandise is removed from a FTZ, customs duties may be eliminated if the goods are then exported outside the United States. If the merchandise is formally entered into U.S. commerce, Customs duties are due at the time goods move outside the foreign trade zone.
The FTZ is operated as a public venture under the supervision of the grantee (the New River Valley Economic Development Alliance), with the U.S. Customs Service enforcing Customs Service laws.
Western Virginia's Foreign Trade Zone is a general-purpose zone (GPZ) established for multiple activities by multiple users. In instances where a firm wants foreign-trade zone status for its own plant or facility, or when the existing general-purpose zone cannot accommodate the firm's proposed activity, a subzone may be granted to companies sponsored by the grantee.
How will my company benefit?
For companies doing business outside of the U.S., there are many benefits to utilizing the Port of Entry and Foreign Trade Zone.
The New River Port serves an area 90 miles in any direction from Dublin's New River Valley Airport. The Port's Customs Officer is available to travel within this 90-mile radius.
Companies can ship from any foreign location directly to the foreign Trade Zone, and can in-bond ship direct from any port eliminating time delays that could occur at other ports.
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Zone-to-Zone Transfer
An increasing number of firms are making use of the ability to transfer merchandise from one zone to another. Because the merchandise is transported in-bond, Customs duties may be deferred until the product is removed from the zone for entry into the U.S. territory.
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Duty Savings
By using a foreign trade zone, companies are able to defer, reduce or in some cases eliminate duty charges, depending on the use of the incoming goods and whether the goods are ultimately exported or stay in the U.S.
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Customs
The clearing of customs locally for freight and passengers is much quicker and convenient than the delays and waiting required at other Ports of Entry.
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Inventory Control, Direct Delivery and Weekly Entry
Many companies using FTZs find that their inventory control systems run more efficiently, increasing their competitiveness. FTZ users also find that in meeting their FTZ reporting responsibilities to the U.S. government, they are eligible to take advantage of special Customs procedures such as direct delivery and weekly entry to expedite the movement of cargo, thereby supporting just-in-time inventory methodologies.
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Taxes
Tangible personal property imported from outside the U.S. and held in a zone, as well as that produced in the U.S. and held in a zone for exportation, are not subject to State and local ad valorem taxes.
If you have any questions about Port of Entry #1412 or Foreign Trade Zone #238 please contact Aric Bopp at 540-267-0007 x205 or abopp@nrvalliance.org.