Tire Group International has been granted Foreign Trade Zone (FTZ) 281-4 status, which the company said will give it the ability to defer, reduce and even eliminate costly customs duties on products brought into its U.S. distribution center for re-export.

FTZs are secure areas that are considered outside the customs territory of the United States. Becoming a FTZ offers companies several benefits, including: duty referral, insurance benefits, duty exemption, tax savings, international returns/quality control, among others. A corporation using a foreign trade zone to import can defer taxes and duties on those materials and merchandise imported, until sale of the finished product is transacted.
 
“We are proud to be one of the first four companies and the only tire distributor in the state of Florida approved to do business within the FTZ 281,” said Orlando Delgado, chief operating officer for Tire Group International. “As a company we needed to undergo a series of comprehensive audits of our internal processes and systems. Having received approvals from the Foreign Trade Zone Board in Washington, D.C., the Port of Miami and the U.S. Department of Homeland Security Customs and Border Protection agency is an affirmation of the quality of TGI’s staff and internal controls.

“Obtaining FTZ status brings benefits to our customer base by being able to offer a wider array of cost-effective and quality products and to the global manufacturers we deal with, it will further enhance their brands throughout Latin American and the Caribbean,” he added. “This is one more way to show our customers and vendors our commitment to grow our business and to help our partners do the same.”