Puerto Rico has the largest, noncontiguous Foreign Trade Zone (FTZ) system in the United States. The system allows companies to obtain significant financial savings, since raw material, components and packaging can be transported tax free through these zones and items shipped abroad after processing are exempt from U.S. taxes.
Benefits of the FTZ in Puerto Rico include:
Deferment of federal customs duties
Deferment of Puerto Rico excise tax
No payment of Municipal License Taxes on exports outside the United States.
No duty paid on damaged, scraped and obsolete merchandise
U.S. customs duties are not owed on labor, overhead and profit attributed to production operations in a FTZ.
Reduction of time and effort in the activation process.
There are three Foreign Trade Zones (FTZ) in Puerto Rico:
FTZ #7, operated by the Puerto Rico Industrial Development Company (PRIDCO), is considered the largest noncontiguous FTZ within the United States. and its territories.
It includes five sub-zones in several island municipalities managed by private companies.
The zone includes 138 industrial parks spread out over approximately 4,554 acres and 714 buildings around the Island (equivalent to 19.5 million square feet of industrial space).
FTZ #61, is operated by PROMOEXPORT, a government-owned corporation of the Commonwealth of Puerto Rico in charge of the promotion of exports for the Island, administration of commercial facilities and the administration of FTZ No.61.
It is located in Guaynabo, at a 203-acre International Distribution Center.
The Zone’s six buildings are equivalent to 719,536 square feet of storage/distribution facilities.
FTZ #61 includes 10 sub-zones in different municipalities.
FTZ #163, is operated by the Ponce Foreign Trade Zone Development Corporation (CODEZOL, C.D.), a development corporation of the Municipality of Ponce created to manage the foreign trade zone and to develop and increase national and international trade in the southern part of the Island.
FTZ #163 has 168 acres and its International Distribution Center provides 24,000 square feet of warehouse space.The Zone has 2 1/2 acres of outdoor storage and parcels of land.
