A to Z of an FTZ

How Relocation to a Foreign Trade Zone Could Make Your Business More Competitive

Relocation and Competitive Business | Town of Islip

Within the Town of Islip is an underutilized resource known as Foreign Trade Zone #52 (FTZ). In this designated area, import-export businesses with global dealings are at a competitive advantage when it comes to profitability and production flow, making the FTZ one of the most invaluable resources to business in the area.

Privileges and Benefits
When you operate your business within a Foreign Trade Zone, there are many privileges and benefits to your business operations.

Duty Deferral
Import now, pay later. Duty and federal excise taxes aren’t paid until the merchandise is transferred from the zone for consumption.

Duty Elimination
Cut your losses, literally. Imported raw materials that are lost as waste or scrap as a result in the process of manufacturing aren’t considered imported; no duty is paid on waste portions when the finished product arrives in the U.S.

Duty Reduction
Pay the best rate. Finished products or assembled imported goods may be subject to a lower duty rate; businesses elect to pay whichever rate is lower.

Duty Exemption
“Free” is a CEO’s favorite four letter word. No duties or quota charges on re-exports.

Show off, freely! Merchandise and machinery may be held for exhibition or displayed without duty payments.

Quality Control
In with the good, out with the bad. Quality control inspections ensure only acceptable products are imported and sub-standard goods are destroyed or returned before duty is paid.

Weekly Entries
Time is money! Zone users file one entry per week, which cuts down on paperwork and expenses.

Zone-to-Zone Transfer
Goods on the move. Move merchandise from one FTZ to another and defer duty payments until the goods are admitted into the market.

How FTZ #52 Works for You
If your business imports raw materials or finished products, then your business will directly benefit from operating within the Town of Islip’s Foreign Trade Zone. Business in the aerospace and aviation, industrial manufacturing and pharmaceutical industries benefit most from entering a Foreign Trade Zone (FTZ) business operation agreement. In these industries, the import of raw or finished materials often raises overhead of production and decreases profit margins. Within the Town of Islip FTZ, business operates more competitively and more profitably. Additionally, FTZ offers businesses unparalleled quality control with regular import inspections that protect businesses from paying duties on subpar or defective materials and goods.

The Town of Islip Advantage
With a beneficial draw as strong as FTZ #52, considering relocating your business headquarters to the Town of Islip might seem like a no-brainer, especially if your business heavily relies on important raw materials and goods. In additional to the FTZ, our town boasts numerous resources attractive to a variety of key sectors. Islip boasts a high quality of life, a highly - educated and skilled talent pool, and a multitude of transportation options such as the Long Island Railroad and convenient access to Long Island MacArthur Airport, but that’s not all. The Town of Islip Industrial Development Agency offers economic benefits including tax abatements, low-cost financing, and various other incentives to corporations. 

Click here to learn more about Foreign Trade Zone #52. For more information about incentives and programs the Town of Islip has to offer, call 631-224-5512 or email ecodev@islipny.gov.