What is a Foreign Trade Zone?

A Foreign Trade Zone is a secured area of land within the boundaries of the United States but considered outside of U.S. Customs Territory. When foreign merchandise enters the FTZ, it is considered to be in the international market, which means that normal U.S. Customs entry procedures do not apply.

Is There a Foreign Trade Zone in Oklahoma?

Two plans on the runway at Ardmore Industrial Airport, in Ardmore, OK

Yes! Foreign Trade Zone #227 comprises three sites located in Ardmore, Oklahoma, and Durant, Oklahoma. In Ardmore, the Ardmore Industrial Airpark and Westport Industrial Park are the two locations within the FTZ. Located a one-hour drive from both Oklahoma City and Dallas, FTZ #227 gives occupants access to both markets.

There are many business-related advantages for locating within a Foreign Trade Zone, including:

  • Duty Exemption: No duties or quota charges on re-exports.
  • Duty Deferral: Customs duties and federal excise tax deferred on imports.
  • Inverted Tariff: In situations where zone production results in a finished product that has a lower duty rate than the rates on foreign inputs (inverted tariff), the finished products may be entered at the duty rate that applies to their condition as it leaves the zone (requires prior authorization).
  • Logistical Benefits: Companies using FTZ procedures may have access to streamlined customs procedures (e.g., “weekly entry” or “direct delivery”).
  • Other Benefits: Foreign goods and domestic goods held for export are exempt from state/local inventory taxes. FTZ status may also make a site eligible for state/local benefits, which are unrelated to the FTZ Act.

For more information on Foreign Trade Zone 227, please visit the REI Oklahoma or call James Harrington at 800-658-2823.