In addition to the monetary benefits an importer can exercise, there are also several non-monetary benefits:
$ Increased velocity in the supply-chain
$ Increased compliance with Customs
$ Product more secure
|Case Study: Electronics companies often bring in dutiable components that need to be assembled. Under the regulations, the components undergo an essential character change when assembled/boxed therefore, creating the finished good, which is duty free. When the duty rate for cell phone batteries went from free to 3%, many cell phone companies became zone clients to avoid paying millions in duty on batteries.|
Case Study: Manufacturer of mattresses in Mexico began using a FTZ in the US in order to delay title transfer. Product manufactured in Mexico which qualifies for NAFTA is duty free and MPF exempt. However, this particular company needed to have their product staged in the US until Point of Sale. By storing in the US FTZ the company had a much faster supply-chain and took advantage of the delayed title transfer.