A company wants to minimize tariff costs while avoiding the need to file for duty drawback. Which of the following practices would best achieve this objective?
A company wants to minimize tariff costs while avoiding the need to file for duty drawback. Which of the following practices would best achieve this objective?
Using foreign/free trade zones (FTZs) is the best practice to minimize tariff costs while avoiding the need to file for duty drawback. In an FTZ, goods can be imported without incurring duties until they leave the zone and enter the general market. This defers, reduces, or even eliminates tariff costs, helping to achieve the company's objective without the need for the duty drawback process.
It should be use of FTZ
B As The ultimate goal of any FTZ is to encourage foreign investment and exports. Goods can be shipped to an FTZ without incurring duties or being subject to quotas
B is correct
B By using a Foreign-Trade Zone, the company avoids the lengthy Customs duty drawback process. No duty is paid on goods destroyed in the zone, which can ...
Correct answer D
Correct answer is FTZ.