Foreign Trade Zones in Tempe: A Strategic Advantage for Global Business

What is a Foreign Trade Zone?

A Foreign Trade Zone, or FTZ, is a federally designated area within the United States that allows companies to operate under special customs procedures designed to strengthen domestic business activity and enhance global competitiveness. Within an FTZ, foreign and domestic merchandise may be imported, stored, assembled, manufactured, exhibited, or processed without immediate payment of U.S. customs duties, quotas, or certain import restrictions. Duties are only paid when merchandise leaves the zone and formally enters U.S. commerce, providing companies with greater flexibility, improved cash flow, and meaningful cost savings. 

What are the advantages of a Foreign Trade Zone?

For companies operating in Tempe, Foreign Trade Zone No. 75 offers a powerful tool to support international trade, advanced manufacturing, logistics, and distribution activities. Businesses using the zone can benefit from deferred, reduced, or in some cases eliminated duties, particularly when finished products carry a lower duty rate than their individual components. Additional advantages include the ability to avoid duties on re-exported goods, reduced merchandise processing fees, and more efficient inventory management for high-value or high-volume operations. 

Who administers a Foreign Trade Zone?

Authority to establish and oversee Foreign Trade Zones is granted by the Foreign Trade Zones Board of the U.S. Department of Commerce. In Greater Phoenix, FTZ No. 75 was authorized in 1982 and is administered by the City of Phoenix as the official Grantee. While the City of Tempe is fully located within FTZ No. 75, the City of Phoenix is responsible for the establishment, administration, and promotion of the FTZ program across the region. Individual companies cannot apply directly to the Foreign Trade Zones Board and must work through the designated Grantee to access FTZ benefits. 

Where does Tempe fit in?

Tempe’s inclusion within FTZ No. 75 provides local and relocating companies with a competitive advantage in global supply chains, particularly in sectors such as advanced manufacturing, aerospace, semiconductors, and logistics. Companies considering international trade or expansion are encouraged to evaluate how FTZ participation can support operational efficiency and long-term growth. 

Interested in learning more?

If your company is interested in exploring Foreign Trade Zone designation or activation in Tempe, contact us to begin the process. Our team can help assess eligibility, coordinate with the regional FTZ grantee, and guide you through the steps needed to access FTZ benefits and strengthen your global operations. 

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