Foreign Trade Zone
Foreign Trade Zones (FTZ) are designated areas which are considered outside of U.S. Customs territory. Companies that operate in FTZ designated areas can defer, reduce, or eliminate customs duties on foreign products that are brought into the zones for storage, exhibition, assembly, manufacture, and processing. Customs duties are not paid on products and materials exported from foreign-trade zones; they are paid only on products entered into U.S. Customs territory. Zone users may elect to pay the duty rate applicable to either the original foreign material or the finished product manufactured from the foreign material, whichever is lower. No duties are owed on scrap/waste. Zones provide the opportunity to reduce cycle time by expediting the receipt of foreign sourced material and filing summary entries only once per week. This makes many U.S. operations more cost-competitive with overseas operations.
As of January 2021, Foreign Trade Zone designation can be brought to any company within New London County.
Category: Incentives
More Incentives
This grant program is intended to help Connecticut supply chain companies with the adoption and integration of IoT solutions. The program will provide matching grants up to $20,000 for hardware, sensors, platforms, and related third-party integration services.
Opportunity Zones offer an incentive for development as capital gains taxes derived from qualified investments are deferred for up to ten years, depending on when the initial investment is made.
