Foreign Trade Zone
Lorain is part of Foreign-Trade Zone 40. The U.S. Foreign-Trade Zone (FTZ) program is a unique global supply chain management tool that assists U.S. companies engaged in international trade by offering significant, ongoing cost savings to help them be more competitive in a global market. The FTZ program was created in 1934 by Congress as an incentive to encourage companies to keep investment and jobs in the United States.
A FTZ is a designated area within the US that is considered to be outside the stream of international commerce. Certain types of merchandise may pass through into the zone without being subject to customs or excise tax.
There are two types of zones: General Purpose Zones and Subzones.
- General Purpose Foreign-Trade Zone site is established to accommodate a number of companies and multiple activities. It is typically defined as an industrial or commercial park. Public warehouse operations also operate as General Purpose FTZ’s.
- A Subzone is a special purpose zone established for a single company.