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FTZ Success Stories

The Oil Industry

The oil refinery industry has been affected by  governmental regulations that increases the production cost. Some regulations are orientated towards environmental concerns. For example, the Environmental Protection Agency added more restrictions to limit lead addictives to gasoline. This restrictions increased the production cost as well as the duty payments. Therefore, the oil companies that were located in foreign trade zones saved themselves millions of dollars.

The Space Industry 

The development of commerce in Outer Space is a growing business and the U.S decided to use the FTZ program  to be able to compete with other nations, such as Japan and France, in providing transportation services to Space. Through this program firms are able to defer their duty payments and safe money.

Shipbuilding Industry

The foreign trade zone program has given the U.S Shipbuilding Industry an effective way to compete against foreign shipbuilding industries. Foreign shipbuilders has had advantage over U.S shipbuilders because they have subsidized shipyards, have used fewer environmental regulations and have had cheaper labor.  Through the FTZ program the U.S Shipbuilding  Industry is able to reduce or eliminate duty on import components used in ship repair, shipbuilding and heavy construction.

Foreign Investment

Foreign automobile manufacturing corporations are also using the FTZ program for their own advantage. Through this program they defer duties on imported vehicles, reduce duties on manufactured vehicles, avoid duties on exported manufactured vehicles and also use the zone to exhibit their vehicles. These companies  have to be committed to be responsible and active in the state's affairs and also contribute to the educational, cultural, and to the environmental development of the region.