Merced County Regional Foreign-Trade Zone No. 226
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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%.

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