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Foreign-Trade Zone #133 Advantages

The Quad Cities offers the advantages of a foreign-trade zone for businesses. Foreign-trade zones (FTZs) are designated sites within the United States where foreign and domestic merchandise is considered to be outside the U.S. customs territory, allowing companies to defer, alter or in some cases, eliminate duties. Foreign-trade zones give companies flexibility in the way they operate their business. By operating through an FTZ, a company can import components duty-free, assemble a product and re-export it, all without having to pay duties.

In addition, FTZ users benefit from faster, more efficient logistics through streamlined procedures such as direct delivery, weekly entry and export filings, and zone-to-zone transfers - reducing transit times by hours or even days. These efficiencies help lower inventory levels, consolidate reporting and reduce administrative costs. As global trade grows more complex, the value of FTZ participation continues to increase.

Businesses located within 60 miles or 90 minutes of the Quad Cities Port of Entry can apply to operate in our FTZ #133 and defer, alter or sometimes eliminate duties on foreign and domestic merchandise. Counties within this service area include:

  • Illinois: Henderson, Henry, Mercer, Rock Island and Warren Counties
  • Iowa:  Cedar, Clinton, Des Moines, Dubuque, Henry, Jackson, Johnson, Jones, Lee, Louisa, Muscatine, Scott and Washington Counties

8 ways FTZ can save your company money

  1. Duty Deferral

    Pay duties only when goods enter U.S. commerce - not while they’re stored in the zone.

  2. Duty Elimination

    No duties on re-exported goods or items that are defective, damaged, obsolete or scrapped.

  3. No Drawback Complexity

    Avoid the cost and administrative burden of duty drawback programs.

  4. Inverted Tariff Savings

    Apply the lower duty rate - either the imported component or the finished product.

    Example: A 5.3% duty part used in a product with a 1.4% duty is taxed at 1.4%.

  5. Quota Flexibility

    Store quota-restricted goods in the FTZ without immediate impact.

  6. Faster Logistics

    Expedite imports directly to the zone and streamline outbound shipments with weekly filings.

  7. No Duty on U.S. Value Add

    Duties apply only to foreign content - not U.S. labor, materials or overhead.

  8. Lower Processing Fees

    Replace per-shipment fees with a single capped weekly fee - saving significantly over time.

Julie Forsythe
Julie Forsythe
Chief Economic Development Officer
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