Foreign Trade Zone
- Customs duty and internal revenue taxes are paid only when a company transfers merchandise from a FTZ to U.S. Customs territory for domestic consumption.
- Goods may be exported from a FTZ free of duty or taxes.
- If a manufacturer imports parts or raw materials to a facility in the zone and then sells the finished product in the U.S., the manufacturer can choose to pay the tariff on the raw materials or the finished product, thus saving tariff costs.
- Merchandise can be stored indefinitely and is not subject to quotas.
Hampton companies interested in obtaining FTZ benefits should consider applying for a subzone designation. Subzone designation is made for a single company and fall under the authority of the general purpose zone. Only the general purpose zone operator can obtain subzone status for a company and not the company itself as an application must be made to the U.S. Department of Commerce. Any company interested in obtaining subzone status should contact the Virginia Port Authority at (757) 683-2107. Applications are generally approved within six months to a year of application.