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The Ontario Foreign Trade Zone
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The Ontario Foreign Trade Zone (FTZ) is designated and licensed by the FTZ Board under the direction of the U.S. Secretary of Commerce. FTZ procedures in these areas of Ontario allow domestic activity involving foreign items to take place as if it were outside U.S. Customs territory --- thus offsetting Customs advantages available to international producers who export in competition with domestically made products.
Benefits of the Ontario Foreign Trade Zone include:
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Assists in facilitating and expediting international trade. |
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Assists in attracting international activity and encourages retention of domestic activity. |
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No duty is paid if the merchandise is exported directly from the zone. |
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There are no duties or quota charges on re-exports. |
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Customs duties and federal excise tax are deferred on imports until the cargo is removed from the zone. |
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Foreign goods and domestic goods held for export are exempt from state/local inventory taxes. |
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A strategic link and ease of access to local, regional, national and international markets. |
Permissible activities in the Ontario Foreign Trade Zone include:
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Storage: Foreign and domestic merchandise may be stored within the zone for an unlimited period of time, thereby avoiding duties and taxes. |
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Product handling: Merchandise may be opened, examined, assembled, mixed, cleaned, labeled or repackaged within the zone. |
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Exhibiting: Merchandise may be displayed, sampled or examined within the zone. |
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Disposal: Waste materials and damaged or valueless merchandise may be destroyed within the zone to avoid duties. |
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