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Duty Reduction
Import duties on components are often higher than those charged for finished products. Products can be assembled or manufactured inside the FTZ. The finished goods will enter the U.S. market generally with a lower duty than their individual components.
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Duty Elimination
Import duties can be avoided altogether if goods that enter the FTZ are stored, sorted, tested, assembled, configured, repackaged and otherwise handled within the FTZ and are then exported without ever entering the U.S. marketplace.