Foreign Trade Zone

The City of Hampton is located within Foreign Trade Zone (FTZ) #20. Companies that import product and locate in FTZs can benefit by using special procedures to encourage U.S. activity by reducing, eliminating, or delaying duties.

  1. Duty Deferral: Users can avoid paying duties on imported merchandise until the goods are removed from the FTZ and enter in the U.S. commerce. Duty on machinery is deferred until it is put into production; there is no duty paid on re-exports or scrap.
  2. Inverted Tariffs/Duty Reduction: FTZ zone users can pay lower duty rates on goods produced in the zone when the finished product has a lower duty rate than the imported components and parts.
  3. Weekly Entries: Zone users will benefit if they file multiple Customs and Border Protection entries each week. FTZs allow the user to file this paper work once a week at a rate no higher than $485.
  4. No Time Constraints: Merchandise may remain in the zone indefinitely, whether or not it is subject to duty.
  5. Customs Compliance: Customs & Border Protection requirements and federal criminal sanctions are deterrents against theft. Cargo that is imported into FTZs have fewer incidents of loss and may result in lower insurance costs.

Hampton companies interested in obtaining FTZ benefits should consider applying for site designation. Companies should contact The Port of Virginia, Grantee for FTZ 20, at 757-683-2135. Applications for site designation take 30 days and activation of a site generally takes 3-6 months.