Merced County Regional Foreign-Trade Zone No. 226

Business Benefits of FTZ Operations

How to Save: Manufacture/Processing Model

Inverted Tariff

Example: A manufacturer imports three components for the production of its vacuum cleaners which, when imported, are subject to a duty rate of 3.5%.

  Chart showing cost savings on duty fees for an FTZ manufacturer

The FTZ manufacturer is able to realize a savings of approximately 4.5%.