Foreign-Trade Zone procedures can help qualifying businesses manage duties, inventory, customs activity, and international supply chains more efficiently.
The specific opportunities vary by operation, but FTZ #29 can provide companies with tools designed to strengthen U.S. operations and improve global competitiveness.
Choose the challenge that matters most for your business.
Your focus: Cash flow
Under FTZ procedures, duties on foreign merchandise generally are not paid when the merchandise first enters an activated FTZ. For merchandise ultimately entering U.S. commerce, duty payment generally occurs when the merchandise leaves the zone and enters U.S. customs territory for consumption.
That timing may allow your company to retain working capital longer rather than paying duties earlier in the inventory cycle.
Improved timing of cash outflow and stronger working capital.
Your focus: Duty costs
The right FTZ procedures may help reduce import-related costs. Qualifying exports can avoid U.S. customs duty, while weekly entry may reduce processing fees. Authorized production may offer additional opportunities where a lower finished-product duty rate applies.
The opportunity depends on your merchandise, duty rates, entry frequency, and applicable authority.
Lower duty expenses and transaction costs where applicable.
Your focus: Inventory
FTZ procedures offer additional options for managing imported merchandise before it enters U.S. commerce. Hold inventory, export or re-export merchandise, and carry out authorized activities as your operation and market demand require.
Keep more options open while aligning inventory decisions with your business needs.
Greater flexibility in how and when imported merchandise moves.
Your focus: Supply chain
For qualifying operations, FTZ procedures may simplify customs activity and the movement of merchandise. Weekly entry, authorized direct delivery, and FTZ-to-FTZ transfers can support a more efficient flow of goods.
Match the available procedures to your shipment patterns, facility, and supply-chain structure.
More efficient customs processes and movement of merchandise.
Together, these opportunities may help strengthen your U.S. operation in a global market.
Go straight to the FTZ procedure you want to understand.
Duty deferral
Defers applicable customs duty on foreign merchandise while it remains within the FTZ. Duty generally becomes payable when merchandise enters U.S. commerce for consumption.
Potential advantage: Improved timing of cash outflow and stronger working capital.
Duty elimination
U.S. customs duty generally is not paid on qualifying foreign-status merchandise exported or re-exported from the FTZ.
Potential advantage: Reduced duty costs for qualifying export activity.
Weekly entry
Allows qualifying FTZ users to consolidate eligible merchandise into a weekly customs entry.
Potential advantage: Potential Merchandise Processing Fee (MPF) and administrative savings.
Inverted tariff
In certain authorized production situations, a lower finished-product tariff rate may apply instead of a higher rate on certain foreign components. Production authority and merchandise-specific restrictions apply.
Potential advantage: A potentially lower effective duty rate, where applicable.
Direct delivery
Where authorized, provides streamlined procedures for delivering eligible merchandise to the FTZ.
Potential advantage: Potential logistics and administrative efficiency.
Scrap / waste
Certain foreign-status components that become qualifying scrap or waste may avoid customs duty, subject to applicable procedures and requirements.
Potential advantage: Potentially reduced duty costs associated with qualifying waste.
FTZ-to-FTZ transfers
Allows qualifying merchandise to move between FTZ operations under customs bond.
Potential advantage: Continued duty deferral through the FTZ supply chain.
Inventory flexibility
Store, export, re-export, or carry out authorized activities with imported merchandise within an activated FTZ. Production and other activities depend on the applicable authority.
Potential advantage: More options for managing merchandise and responding to demand.
Answer a few quick questions to see which FTZ opportunities may be worth exploring.
Understand the path from initial interest to FTZ operations and what to expect at each step.
Steve Miller became Executive Director of the Louisville Jefferson County Riverport Authority in August 2024. Throughout his career, he has held essential roles in public policy, politics, and non-profit organizations at the national, state, and local levels.
For 17 years, Steve was CEO of the American Coalition for Clean Coal Electricity, a national non-profit association, and its predecessor organizations in Washington, DC. ACCCE was comprised of major railroads, utilities, coal producers, barge companies, and businesses that support the coal-based electricity industry. Its mission was to promote the use of coal in providing affordable, reliable electricity and advocate for investments in advanced clean coal technologies. During his tenure, Steve built ACCCE from an organization focused on government relations in fewer than ten states to an expanded scope in more than 30 states, federal government relations, and a national communications campaign. Under his leadership, the annual budget grew from $3m to $52m. In 2009, the American Association of Political Consultants recognized ACCCE as the national “Public Issue Grand Marketer of the Year” for its integrated communications campaign, consisting of paid, social, and earned media, and a grassroots citizen army.
Steve has embraced leadership roles in electoral politics. He was a prominent staff member in Brereton Jones’ winning campaigns for Kentucky Lt. Governor (1987) and Governor (1991). He was the 1992 Kentucky Organizational Chairman of the Clinton for President Campaign and worked for the campaign’s media consultants to develop paid media strategies across the nation.
Steve is committed to building a better community, serving as Finance Committee Chair of the Transit Authority of River City (TARC) Board and as Strategic Advisor for Economic Development to Louisville Mayor Greenberg. In the latter role, he helped create Growing Louisville Together, the city’s first comprehensive economic development strategic plan in more than a decade, and establish the Louisville Economic Development Alliance (LEDA), the city’s new private-public partnership.
He is a University of Kentucky and UK School of Law graduate where he was initiated into Phi Beta Kappa and Omicron Delta Kappa, a national leadership honorary organization. He has the rare distinction of playing two years on scholarship for the University of Louisville baseball team and holding two degrees from the University of Kentucky.
Steve has visited more than 25 other countries, the 50 states, and each of Kentucky’s 120 counties. He is an avid sports fan, inspired by writing to Alabama football coach Bear Bryant for the first time when he was nine years old. He is a lifelong learner, currently focusing on generative artificial intelligence and behavioral economics. He lives in Louisville with his wife, Pat. They have two sons, Blake and Clarke.