Foreign Trade Zone 125

1. La Porte | 2. St. Joseph | 3. Elkhart | 4. Starke | 5. Marshall | 6. Kosciusko

ABOUT FTZ 125

U.S. Foreign Trade Zones

A U.S. Foreign Trade Zone, or “FTZ,” can provide significant benefits to companies importing parts, components, assemblies or even finished goods, and “zone” can exist right on your properties, and in your warehouses or manufacturing facilities. You may be able to delay and/or reduce or even eliminate duties on imports and take advantage of other benefits to streamline your organization and enhance your bottom line.

The potential benefits of utilizing FTZ 125 are too many to list on a website, and your organization is too unique for a template. Let us start the conversation and connect you with the experts that will help you determine your next steps. Contact FTZ 125 today.

FTZ BASICS

General Information

An FTZ offers significant benefits to companies importing parts, components, assemblies or even finished goods. FTZ 125 is the officially designated zone serving six counties and facilitated by the St. Joseph County Airport Authority. With FTZ 125’s alternative site designation capabilities, the “zone” can exist on your property, and in your warehouse or manufacturing facility. You manage the movement and utilization of imported items. You manage when it hits your balance sheet. You can delay and/or reduce or even eliminate duty on imports and take advantage of other benefits to encourage foreign commerce within the region.

INDUSTRIES THAT FTZ 125 CAN BENEFIT
Some of the largest beneficiaries of FTZ utilization, both nationally and locally, are motor vehicle and component manufacturers, pharmaceutical and medical equipment producers, and many other manufacturers and distributors.
ALLOWABLE ACTIVITIES
Merchandise entering the Foreign Trade Zone may be: Assembled, Cleaned, Displayed, Manipulated Manufactured, Mixed, Processed, Repaired, Tested, Relabeled, Repackaged, Sampled, Stored, Salvaged, and even Destroyed.
POTENTIAL BENEFITS
Benefits may include Duty Deferral, Duty Exemption, Duty Reduction, Inverted Tariff, Merchandise Processing Fee (MFP) Reduction, Streamlined Logistics and Quota Avoidance. Over 3,400 companies nationwide take advantage of FTZ benefits, see how your organization can profit from FTZ 125.

GENERAL INFORMATION

Potential Benefits

There are many potential benefits to activating with FTZ 125 if you do business internationally. Some are directly tangible and impactful such as direct and significant savings, other ancillary benefits are unexpected, such as increased efficiency in inventory management and accounting. To view the list of potential benefits, click here.

FAQs

To view a list of frequently asked questions and terms related to Foreign Trade Zones, click here.

ACTIVATE THE BENEFITS

OF FTZ 125

ACTIVATION PROCESS

Activate the Benefits of FTZ 125

We recommend an objective third-party feasibility analysis as a first step to best evaluate the true benefits available to your organization. The FTZ 125 team can provide a list of experts to assist you with that analysis upon your request.

Some of the information you’ll want to have ready for the analysis of potential benefits includes:

  • Total annual value of imported (dutiable) merchandise
  • Number of customs entries made annually
  • Total annual Merchandise Processing Fee(s) paid
  • Average number of inventory turns for previous year
  • HTS list of imported merchandise (see HTSUS)
  • FTZ list of finished product (if manufacturing occurs)

Once you have determined your desire to activate, FTZ 125 and your consultant will guide you through the entire process.  A high-level summary of the process is:

  • Contact FTZ 125 to make us aware of your intentions to activate.
  • Apply to the National FTZ Board to have your facility approved.
  • If pursuing production authority (that will allow you to capture an inverted tariff benefit), you will also need to complete an additional application to the National FTZ Board which will be posted in the Federal Register for public comment.
  • Activate your FTZ site or subzone with Customs & Border Protection. This requires demonstrating requisite security measures and customs entries processes and procedures per the CBP Foreign Trade Zone manual.

Costs and Fees related to activation:

The Fee structure for FTZ 125 is outlined in the Zone Schedule. Additional costs may include:

  • Foreign Trade Zones Bond
  • Costs to upgrade building security
  • Costs to implement software tools to file electronic customs entries
  • Consulting and/or legal fees, particularly if pursuing production authority

CONTACT FTZ 125

Contact us today!

PHONE + EMAIL

574.344.4686 ext. 4810
FTZ125@southbendelkhart.org

FTZ 125 ADDRESS

c/o South Bend Elkhart Regional Partnership
635 S. Lafayette Blvd., Suite 123
South Bend, IN 46601