Average On-Hand Imported Merchandise Inventory	$25,000,000
Annual Imports of Foreign Parts/Material	$100,000,000
Direct Cost Savings
Average Rate of Foreign Parts/Material Customs Duty	6%
Average On-Hand Imported Merchandise Inventory	x $25,000,000
= FTZ Borrowing Reduction Savings	$1,500,000
x Interest Rate	x 5%
= FTZ Interest Reduction Savings	$75,000
Merchandise Processing Fee	$485
Average Weekly Entries in a Zone	x 20
Annual Weekly Entries	x 52
= Annual MPF Expense Without a Zone	$504,400
= Annual MPF Expense With a Zone	- $25,220
= Annual Savings	$479,180
Customs Broker Entry Fee	$125
Number of Customs Entries Filed	x 1,040
= Annual CBF Expense Without a Zone	$130,000
= Annual CBF Expense With a Zone	- $6,500
= Annual Savings	$123,500
Optional Savings
Annual Percentage of Scrap/Waste/Obsolete/Surplus Merchandise	3%
Annual Imports of Foreign Parts/Material	x $100,000,000
= Average Annual Cost of Surplus Merchandise	$3,000,000
= Average Foreign Parts/Material Customs Duty Rate	x 6%
= Scrap/Waste/Obsolete/Surplus Savings in FTZ	$180,000
Average Percentage of Zone-to-Zone Transfers	10%
Annual Imports of Foreign Parts/Material	x $100,000,000
= Average Annual Cost of Zone-to-Zone Transfers	$10,000,000
= Average Foreign Parts/Material Customs Duty Rate	x 6%
= Zone-to-Zone Transfer Savings in FTZ	$600,000
Average Percentage of Exports	20%
Annual Imports of Foreign Parts/Material	x $100,000,000
= Average Annual Cost Exports	$20,000,000
= Average Foreign Parts/Material Customs Duty Rate	x 6%
= Export in FTZ	$1,200,000
Total Savings
Range from $2,657,680 to $4,082,680 depending on which cash-flow savings option is chosen. As production increases, the financial savings will increase as well.