UPS Expands Foreign Trade Zone Management And Consulting Services
05 Septembre 2019 - 4:00PM
- Consulting, management and fulfillment services create
comprehensive Foreign Trade Zone (FTZ) solutions
- UPS converts four major U.S. gateways into FTZs
- 42 UPS-operated distribution centers in U.S. available for
FTZ
UPS (NYSE:UPS) today announced the recent
integration and expansion of Zone Solutions* within its customs
brokerage, warehousing, logistics and transportation business. The
addition gives UPS a portfolio of Foreign Trade Zone (FTZ)
consulting, management and fulfillment services.
UPS also converted four of its major U.S.
international air freight (IAF) gateways into FTZs: Chicago (ORD),
New York (JFK), Dallas (DFW), and Los Angeles (LAX). The expansion
extends UPS’s FTZ-related capabilities beyond warehousing and
distribution to create a comprehensive FTZ solution for helping
clients manage the end-to-end process from dealing with customs to
inventory control. Any of UPS Global Logistics’ 42 U.S.
distribution centers can become FTZs.
“UPS is constantly searching for ways to add
value while decreasing the cost and complexity of our customers’
supply chains,” said Jeff McCorstin, President of UPS Global
Brokerage and Customs. “Adding FTZs enables customers to streamline
compliance validations to mitigate risk and promote savings on
their IAF shipments by leveraging FTZ-designated gateway
facilities.”
The strategic utilization of the FTZ program
provides opportunities for duty elimination on exports and scrap,
as well as duty deferral on foreign status inventory in an
activated FTZ.
According to the most recent data from the
Census Bureau (2017), import duties totaled $33.1 billion – equal
to 1.4% of the total value of all imported goods, and 4.7% of the
value of all imports subject to duty. For businesses looking to
grow and expand, proper management and payment of duties is
critical.
Importers in industries such as consumer
electronics, automotive, apparel, and footwear historically pay
high duty rates when importing their products into the country.
Foreign Trade Zones help reduce duties, import taxes and other fees
by utilizing special regulations that provide potential cost-saving
measures through duty deferral, duty elimination, tariff inversion,
fee consolidation and streamlined U.S. Customs procedures.
Additional potential benefits of FTZs
include:
- Duty deferral – store
merchandise in an FTZ and delay paying duty until goods enter into
U.S. commerce
- Duty elimination - pay no duty for
goods not entered for consumption in the United States when
exporting goods out of the zone or when destroying goods no longer
needed
- Inverted tariff shift - the use of
kitting or manufacturing techniques in the FTZ may result in a
new tariff classification with a lower duty rate
- Fee consolidation - entries to U.S.
Customs are consolidated into one weekly entry
- Time to market - goods that have
not yet received FDA approval, or approval from another government
agency, may potentially be housed in an FTZ in anticipation of
approval, and ready for market
- Regulatory compliance - systematic
monitoring of FTZ transactions helps drive consistent
processes
UPS Global Customs Brokerage processes almost 25
million import clearances each year in the U.S. alone, making it
one of the world’s largest customs brokers. In 2017, UPS
acquired Zone Solutions, a 20-year leader in FTZ services, to
bolster its global trade portfolio and provide a wide range of
services for companies considering a FTZ program.
“This acquisition was in direct response to our
customers’ growing needs,” McCorstin added. “Zone Solutions’ talent
and expertise means UPS now provides leading FTZ solutions
offerings.”
For additional information, visit UPS Zone
Solutions, and to learn more about potential savings, visit our FTZ
Savings Estimator.
*Zone Solutions is a service offered by UPS
Trade Management Services, Inc.
About UPS
UPS (NYSE: UPS) is a global leader in logistics, offering a
broad range of solutions including transporting packages and
freight; facilitating international trade, and deploying advanced
technology to more efficiently manage the world of business.
Headquartered in Atlanta, UPS serves more than 220 countries and
territories worldwide. UPS was awarded America’s Best Customer
Service company for Shipping and Delivery services by Newsweek
magazine; Forbes Most Valuable Brand in Transportation; and top
rankings on the JUST 100 list for social responsibility, the Dow
Jones Sustainability World Index, and the Harris Poll Reputation
Quotient, among other prestigious rankings and awards. The company
can be found on the web at ups.com or pressroom.ups.com and its
corporate blog can be found at longitudes.ups.com. The company’s
sustainability eNewsletter, UPS Horizons, can be found
at ups.com/sustainabilitynewsletter. To get UPS news direct,
follow @UPS_News on Twitter. To ship with UPS, visit
ups.com/ship.
Chad Biele
404-828-8702
cbiele@ups.com
United Parcel Service (NYSE:UPS)
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