Foreign Trade Zone

To reduce your cost of doing business internationally

Who is eligible

A broad range of companies use Foreign Trade Zones (FTZ), including:

Warehouses and distribution firms
General manufacturers
Food processors
Electronics manufacturers
And many more

To participate

You can participate anytime by contacting David Heyer at david.j.heyer@state.mn.us or 651-259-7468.

Benefits of FTZs

Deferring and reducing duty payments

Inventory kept within an FTZ may be held indefinitely without paying customs duty. Duty is paid only as merchandise is delivered to its market.

Reducing costs

Goods may be stored, distributed, or produced while in an FTZ. If a company’s finished product is destined for the U.S., paying a finished product rate can save money.

Saving on processing fees

Import fees can be combined into one weekly entry fee instead of individual Customs entry fees, lowering overall import costs.

Making duty-free exports

Imported goods can be stored and exported without incurring duties.

How it works

The greater Minneapolis-St. Paul metropolitan area has an existing Foreign Trade Zone (FTZ #119) that companies can use. Hennepin County is within the Alternative Site Framework (ASF) service area, meaning businesses within the county can create a subzone at their existing location. A new distribution zone can be approved in as little as 30 days.