The designation will allow Transpak partners to benefit from deferral, reduction, or even possible elimination of tariffs on imported goods.
Transpak said it is the first packaging and logistics business in Wisconsin to receive this FTZ designation through the port, which became a FTZ-grantee in August.
The FTZ designation will give Transpak special customs treatment concerning the storage, packaging, combining, processing, and distribution of foreign merchandise. Products re-exported outside the United States will receive duty-free treatment while those sold domestically are exempt from tariffs until they leave the FTZ.
“At a time when our economy is becoming increasingly global, foreign-trade zones offer the possibility of substantial savings and financial flexibility when it comes to import tariffs,” said Paul Wendorf, executive vice president of Transpak. “Often, companies who utilize FTZs realize a return on investment in just a few months, based on lower fees and improved compliance.”
