Foreign Trade Zones (FTZs)

Foreign trade zones allow businesses to defer paying Customs duties on imported goods held within the zones until the goods enter the United States for domestic consumption. No duties are paid if goods are re-exported. Companies also receive the benefit of not having to pay duties on broken or scrapped product. Businesses are allowed to store goods within FTZs for an unlimited period of time. They are also allowed to manufacture products within FTZs and pay duties at the duty rate of either the foreign parts used or on the finished product, whichever is most advantageous to the company. Virginia offers six foreign trade zones designated by the Department of Commerce. Each of Virginia’s six FTZs are Alternative Site Framework (ASF) designated, which allows greater flexibility when adding new zone operations as well as expedited FTZ Board applications. Any property within the ASF-designated area of a particular FTZ can obtain status as a usage-driven FTZ site. All zones provide space for light assembly operations. Contact Niki Wilson RIC Properties & Concessions Manager, Capital Region Airport Commission 804.226.8577 nwilson flyrichmond.com Contact Laura Swankler The Port of Virginia 757.683.2136 lswankler portofvirginia.com Eligibility Any company that imports product into the United States and does any of the following processes could qualify for the Foreign Trade Zone program. Merchandise in a zone can be tested. Activated businesses in an FTZ can reduce or eliminate duty on imports and take advantage of other benefits to encourage foreign commerce within the United States. For more information regarding zone benefits and eligibility, contact the zone administrators listed below: Suffolk (FTZ #20) The Virginia Port Authority administers Virginia’s first foreign trade zone. FTZ #20 is the most active in the Commonwealth and has a service area that includes Accomack (partial), Gloucester, Isle of Wight, James York counties, and the cities of Beach, and Williamsburg. Also, North Carolina counties of Perquimans. Contact: Laura Swankler — 757.683.2135 Washington Dulles (FTZ #137) Foreign trade zone #137 is located at Washington Dulles International Airport with two operators using the Alternative Site Framework (ASF) zones. The grantee of FTZ #137 is Washington Dulles Foreign Trade Zone, Inc. Service area includes William and Arlington counties and the City of Alexandria. Contact: Lisa Merhaut — 703.572.8714 Culpeper (FTZ #185) Located in north-central Virginia, the Culpeper foreign trade zone includes Warren counties. Contact: Bryan Rothamel — 504.229.7893 Tri-Cities TN/VA (FTZ #204) Foreign trade zone #204 has a service area in Virginia covering Wise counties, and the cities of Bristol and Norton. The grantee of FTZ #204 is the Tri-Cities Airport Authority. Contact: Mark Canty — 423.367.2385 Richmond (FTZ #207)

Eligibility Any company that imports product into the United States and does any of the following processes could qualify for the Foreign Trade Zone program. Merchandise in a zone can be