TGI given free trade status
Miami-based US tyre wholesaler Tire Group International reports that it was granted ‘Foreign Trade Zone (FTZ) 281-4’ status on 9 September. This designation will give TGI the ability to defer, reduce and even eliminate customs duties on products brought into its US distribution centre for re-export.
Foreign trade zones, or free trade zones, are secure areas under US Customs that are considered outside the customs territory of the US. Being a FTZ zone means benefits for a company in a number of regards, including duty referral, insurance benefits, duty exemption, tax savings and international returns/quality control. Corporations using a foreign trade zone to import can defer taxes and duties on those materials and products imported until the sale of the finished product is transacted.
In August 2012, the US Department of Commerce granted Miami-Dade County the establish Foreign Trade Zone 281. “We are proud to be one of the first four companies and the only tyre distributor in the State of Florida approved to do business within the FTZ 281,” commented TGI chief operating officer Orlando Delgado. “As a company we needed to undergo a series of comprehensive audits of our internal processes and systems. Having recived approvals from the Foreign Trade Zone Board in Washington DC, the Port of Miami and the United States Department of Homeland Security Customs and Border Protection agency (CBP) is an affirmation of the quality of TGI’s staff and internal controls. Obtaining FTZ status brings benefits to our customer base by being able to offer them a wider array of cost-effective and quality products and to the global manufacturers we deal it will further enhance their brands throughout Latin America and the Caribbean. This is one more way to show our customers and vendors our business and to help our partners do the same.”