OMA Connections Partner Clark Schaefer Hackett, a CPA firm with locations across Ohio, recently published insight for manufacturers being negatively affected by tariffs. According to the firm, some companies are considering Foreign Trade Zones (FTZs) to provide some relief. An FTZ is a designated, restricted-access site in the U.S. that is legally considered outside of customs territory for the purpose of duties and taxes, so goods can be imported duty-free and without formal customs entry.
While Chinese imports do not qualify for exemption under FTZ rules, companies importing from countries other than China may be able to benefit. Companies can establish a designated FTZ within their warehouse or facility, and products imported into the zone can then be mixed with U.S. sourced goods. 6/30/2019