Business Resources
Foreign Trade Zone
Lincoln County is included in Foreign Trade Zone No. 203 — giving local companies access to duty deferral, inverted tariff savings, and lower inventory costs.
Overview
What is a Foreign Trade Zone?
A foreign trade zone (FTZ) is an area within the United States that the government treats as if it is outside of U.S. Customs territory. Merchandise can be imported without formal customs entry or import duties.
Within FTZs, companies can display, repackage, repair, or destroy goods; assemble components into finished products; and reexport items.
Lincoln County's FTZ Status
Lincoln County is included in Foreign Trade Zone No. 203. FTZ No. 203 was established at Grant County Airport in October 1994, and Lincoln County was approved for inclusion in June 2011.
Why it matters
Key Benefits
Operating within FTZ No. 203 can unlock meaningful savings and operational flexibility for companies that import, assemble, store, or reexport goods.
Inverted Tariff Benefits
Component parts may carry higher duty rates than assembled products. For example, individual components may be taxed at 8% while an assembled product using those same parts is taxed at only 3%.
Improved Cash Flow
By delaying tax and customs duty payments, you can use cash for other needs.
Lower Inventory Costs
Duties and taxes only apply upon entry to U.S. Customs territory, reducing overall inventory expenses.
Security and Quality Assurance
Enhanced security reduces theft; some insurers offer lower premiums for goods stored in FTZs.
Distribution Savings
Partial disassembly can reduce per-unit transportation costs by allowing more efficient container loading.
Other Benefits
Additional advantages include quota-limited goods storage, scrap duty reductions, and duty rate freezing options.
Background
Historical Context
The Foreign-Trade Zones Act was passed in 1934 as part of the New Deal legislation with the purpose of stimulating and expediting international commerce.
Get in touch
Interested in FTZ No. 203?
Reach out to learn how your business can take advantage of Foreign Trade Zone No. 203. You can also contact the Port of Moses Lake at 509-762-5363.
Contact the EDC
Lincoln County Economic Development Council
- PO Box 1304
Davenport, WA 99122