Foreign Trade Zone #129

FTZ photo

What is a Foreign Trade Zone (FTZ)

A Foreign Trade Zone (FTZ) is a secure, designated area located in or near a U.S. Customs Port of Entry (CPE) where foreign and domestic merchandise is generally considered to be in international commerce and outside U.S. Customs territory. Businesses operating within an FTZ can reduce or eliminate duties on imports and benefit from other incentives designed to promote foreign trade with the United States. FTZs allow companies to defer or reduce duty payments on imported goods and realize additional cost savings. Many firms use FTZs to postpone, and in some cases eliminate (when goods are re-exported), the application of U.S. Customs regulations related to duties, taxes, bonds, quotas, and other requirements. Both domestic and foreign merchandise can be stored, manufactured, displayed, sold, or altered within an FTZ, as long as such activities comply with U.S. law. FTZs operate under the oversight of U.S. Customs and Border Protection and must comply with US law. 

Port of Bellingham: FTZ #129 Grantee

The Port of Bellingham modified FTZ #129 to provide a new benefit for businesses in Whatcom County. The Port's FTZ is under the Alternative Site Framework (ASF). This will allow any new or existing companies within Whatcom County to secure Foreign Trade Zone status for warehousing and distribution operations within 30 days from the time an application is accepted. Manufacturing applications can be approved in 120 days. This is a process that requires basic information on the company, its operation and location. Businesses can now secure approval for FTZ designation more quickly and at a lower cost.

Key Benefits of FTZs

There are many benefits to Foreign Trade Zones (FTZs), which vary depending on the type of operation and the authority granted by the Foreign Trade Zones Board and U.S. Customs. Some of the benefits include:

Duty Exemption

  • No duties or quota charges on re-exports (with some exceptions for NAFTA countries).
  • No duty is paid on goods that are damaged or destroyed in the zone.

Duty Deferral

  • Duties and federal excise taxes are deferred until goods enter U.S. commerce.
  • No time limits on how long merchandise can remain in a zone.

Duty Reduction

  • If imported components are manufactured into a product with a lower duty rate, only the duty on the finished product applies.
  • No duties on value added through labor, overhead, or profit from operations within the zone.


Helpful Links

Calculate Savings: FTZ Savings Estimator Spreadsheet
Review FTZ #129: Zone Schedule
Visit: National Association of Foreign-Trade Zones


For More Information
U.S. Foreign Trade Zone Board, 
Governs applications for FTZ activities

John Michener, Port of Bellingham
johnmi@portofbellingham.com  
or 360-676-2500.