Foreign-Trade Zones (FTZs) provide special customs procedures that help companies conducting international business-related operations compete. An FTZ also facilitates and attracts offshore activity and encourages domestic activity retention, helping create employment opportunities. When a business operates under FTZ procedures, they are treated like they are located outside the United States for purposes of customs duties. That means U.S. import duties don’t have to be paid on imported components entering their factory.
This achievement is a win for Arizona’s economic development. FTZ designation attracts businesses, stimulates job creation, and fosters a more robust business environment. As the first 3PL warehouse in Arizona to secure FTZ designation, SKU Distribution offers unparalleled advantages to businesses engaged in international trade. This not only boosts the competitiveness of local businesses but also contributes to the growth of the Arizona economy.
“The FTZ designation is a cash flow game-changer for businesses. This allows companies to import their products and defer their customs duties and taxes until their product leaves the zone (our warehouse) for domestic consumption. This additional cash flow allows you to purchase more products at no additional cost or invest in other opportunities. As we embark on this new chapter, SKU Distribution is here to guide businesses of all sizes on leveraging the benefits of our FTZ designation. Whether you’re a B2B, manufacturer, or e-retailer, FTZ is a powerful weapon to enhance your competitiveness and financial resilience.” – James Peacock, CEO, SKU Distribution.
Key Benefits of a Foreign Trade Zone Designated Fulfillment Provider:
- Cost Savings: By operating within an FTZ, you can expect reduced customs duties and taxes, leading to substantial cost savings for your business.
- Improved Inventory Management: Our FTZ status allows for superior inventory control, ensuring your products are readily available and reducing carrying costs.
- Streamlined Import and Export: Simplified customs procedures mean faster processing and increased supply chain flexibility.
This FTZ designation is a testament to SKU’s unwavering commitment to providing their clients with the best solutions for their business.
