The difference between a foreign trade zone (FTZ), a free trade zone and the duty-free port is explained, the foreign trade zone in Colon, Panama is briefly described, and the subsurface Kansas City Foreign Trade Zone is discussed. The Kansas Zone which was created after bi-state legislative cooperation between Missouri and Kansas, is a non-profit corporation which acts as a service organization. Contracts allow the Department of Commerce, the Department of Customs, and the Corps of Engineers to approve the subzones or divisions of the main foreign trade zone. The Great Midwest Corporation operates the largest unit. Merchandise comes duty-free, and can enter in sealed containers which are broken for the first time in the FTZ. A record is made of the merchandise when it arrives. If the mercandise goes to another FTZ or outside the country, no duty is paid, but duty will be changed if it is sold in the American market. Some of the many advantages of a FTZ are: imports can be landed and stored quickly without customs formalities; cash flow of a customer can be improved because duties are deferred until the products are ready for the market place; buyers of the FTZ can inspect merchandise, reject inferior goods, and no duty is paid on damaged merchandise.

Media Info

  • Features: Figures;
  • Pagination: p. 91-96

Subject/Index Terms

Filing Info

  • Accession Number: 00130638
  • Record Type: Publication
  • Report/Paper Numbers: Proceeding
  • Files: TRIS
  • Created Date: Apr 7 1976 12:00AM