Simplified Duty Savings Estimator for Foreign-Trade Zone Manufacturing
PURPOSE: This automated worksheet is designed to help small- to medium-sized U.S. manufacturers
perform a basic assessment of duty savings available through use of foreign-trade zone (FTZ) procedures.
INSTRUCTIONS: Enter information for a finished product and up to ten imported inputs. The worksheet
will automatically calculate a basic estimate of the resulting potential FTZ savings (including breaking out
the savings into four categories: 1) export-related; 2) duty deferral; 3) inverted tariff ; and 4) scrap/waste).
NOTE: Additional information about a number of elements of the worksheet can be reviewed by clicking
on the yellow question mark icon (
) associated with a particular element.
DISCLAIMER:
The calculations in this worksheet only cover categories of potential FTZ savings
that relate directly to import duties.
These calculations do not include other categories of potential
savings, such as logistical benefits, which can also yield substantial FTZ-related savings for many
companies
-- you should ask your local zone grantee about those other categories of potential savings.
Finally, overall evaluation of potential participation in the FTZ program should also include an analysis
of the likely costs (e.g., personnel, software, zone fees) that would be involved.
FINISHED-PRODUCT INFORMATION
Finished product name: _____________________
Finished product's current duty rate: _________ %
Percentage of production of this product exported to NAFTA countries (Canada & Mexico): _________ %
Percentage of production of this product exported to non-NAFTA countries: _________ %
Interest rate – enter your approximate interest rate for current borrowings: _________ %
INPUT INFORMATION
INPUT # 1
Input's current
Scrap/waste
Input's days
Annual value of this input used
Input name
duty rate (%)
percentage (%)
in inventory
in producing the finished product
%
%
INPUT # 2
Input's current
Scrap/waste
Input's days
Annual value of this input used
Input name
duty rate (%)
percentage (%)
in inventory
in producing the finished product
%
%
INPUT # 3
Input's current
Scrap/waste
Input's days
Annual value of this input used
Input name
duty rate (%)
percentage (%)
in inventory
in producing the finished product
%
%