Texas Frontier Park is location in Foreign Trade Zone FTZ #196, At AllianceTexas, Fort Worth.  FTZ #196 can be a strategic benefit to companies that import and export goods, including adding value to those goods before releasing to the U.S. market or re-exporting.

Additionally, inventory in the FTZ are not subject to local inventory ad valorem taxes.

Important benefits to consider

  • Imports and Exports - Customs
  • Inventory Ad Valorem - Local taxes

Hillwood manages FTZ #196 at AllianceTexas and provides numerous support services to help users.  The link below will take you to their introduction presentation

Hillwood: Alliance Texas FTZ #196

 

Overview of the Benefits of Foreign Trade Zones (FTZ)

Foreign Trade Zones (FTZs) offer several benefits, including the ability to defer, reduce, or eliminate duty payments on imported goods. This can improve cash flow, reduce processing costs, and enhance competitiveness in global markets. Additionally, FTZs provide streamlined logistics, including expedited customs processes and the possibility of weekly consolidated entries. 

Here's a more detailed look at the benefits:
Financial Benefits:
  • Duty Deferral and Reduction:
    Companies can defer duty payments on imports until goods leave the zone and enter U.S. commerce. This can provide a significant advantage, especially for high-value imports.
  • Duty Exemption:
    Some goods may be exempt from duties altogether, particularly those intended for re-export.
  • Reduced Processing Fees:
    FTZs can reduce Merchandise Processing Fees (MPFs) through consolidated weekly entries, saving on paperwork and processing costs.
  • Improved Cash Flow:
    Deferring duty payments improves cash flow, allowing companies to invest in other areas of their business.
  • Lower Insurance Costs:
    Duties do not need to be included in the incurable value, potentially leading to lower insurance premiums.
Operational Benefits:
  • Streamlined Logistics:
    FTZs offer simplified customs procedures, potentially including direct delivery of goods to the zone operator's location, reducing transit times. 
  • Inventory Control:
    FTZs provide greater control over inventory, allowing for better management and cost control. 
  • Storage Flexibility:
    Goods can be stored in an FTZ for an indefinite period, providing flexibility in responding to market conditions or trade regulations. 
  • Product Flexibility:
    FTZs allow for activities such as assembly, modification, or repackaging of goods without triggering duty payments until the goods leave the zone. 
  • Enhanced Security:
    FTZs adhere to strict CBP security protocols, reducing the risk of theft or tampering.
Other Benefits:
  • Quota Avoidance:
    FTZs can help avoid quota limitations on certain products. 
  • Improved Competitiveness:
    FTZs can help U.S. businesses compete more effectively in the global market by reducing costs and streamlining operations. 
  • Economic Development:
    FTZs can attract both U.S. and foreign investment, fostering economic growth and job creation. 
  • Local and State Benefits:
    FTZ status may make a site eligible for additional state and local economic development programs.
     

In summary, FTZs offer a range of benefits that can improve profitability, streamline operations, and enhance a company's competitive position in the global marketplace. 

NEWS

CNBC: State of Freight: Trump tariffs lead to surge of companies parking imports in tax-free ‘foreign trade zones’ April 21, 2025

Foreign-Trade Zones and Trump Tariffs: Options for Local Economic Developers