FTZ Potential Savings

Reference  
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
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

 



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