Mesa's Foreign Trade Zone #221
Foreign Trade Zone (FTZ) Program is a federal program
administered by the U.S. Foreign Trades Zones Board, a division
of the U.S. Department of Commerce. FTZs are secured areas and
merchandise in a zone is considered outside the customs
territory of the U.S. for formal entry procedures only. Foreign
merchandise admitted to a zone is within the territory and
jurisdiction of the U.S. and is considered imported. FTZ sites
remain within the jurisdiction of local, state and federal
governments or agencies. The FTZ program helps encourage
activity and value-added at U.S. facilities in competition with
foreign alternatives by allowing delayed or reduced duty
payments on foreign merchandise, as well as other savings.
The Grantee for the Mesa FTZ is the City of
Mesa and the program is administered by the Office of Economic
Development. The Mesa FTZ is located at PHX-Mesa Gateway
Airport. An FTZ Subzone can be designated in another Mesa
location when a company is unable to operate effectively at the
existing zone site.
- Duty Exemption (on
re-exports) No duties or quota charges
- Duty Deferral (on
imports) Customs duties and federal excise tax deferred.
- Inverted Tariff (on
imports) In FTZ manufacturing, imported inputs can have
higher duty rates than the finished product to be entered
into U.S. commerce. The FTZ Board may allow the manufacturer
to apply the lower finished-product duty rate to the foreign
- Logistical Benefits.
Companies using FTZ procedures may have access to
streamlined CBP procedures (e.g. "weekly entry" or "direct
- Property Tax Benefit.
Arizona provides a lower assessment ratio for activated
foreign trade zone or subzone sites. Activated sites are
eligible to for a property tax reclassification benefit that
changes the activated property to a Class 6 property, which
carries a 5% assessment ratio. The reclassification may
result in a 75% - 80% reduction in real and personal
- Other Benefits.
Foreign goods and domestic goods held for export are exempt
from state/local inventory taxes.
Information and Questionnaire
The Office of Economic Development is available to assist your
company with the understanding the benefits and eligibility for
your business of the Foreign Trade Zone.
For more information on eligibility
or to request a questionnaire contact
Foreign Trade Zone No. 221 Overview
Schedule - Charges, Rates, Rules and Regulations
U.S. Foreign Trade Zone Board