Foreign-Trade Zone Case Study 2

The Challenge

A company specializing in the import and export of commercial networking products was facing the uncertainty of the new tariff landscape and felt unsure about the potential effect on its bottom line. Leadership began to explore how the establishment of a Foreign-Trade Zone might insulate them from some of the negative ramifications of possible tariffs.

Our Solution

The company engaged Springline because of its decades of experience establishing FTZs and counseling clients regarding ongoing compliance. While the application and setup for an FTZ is typically a 12-to-18-month process, the company asked the Springline team to fast-track the application to hopefully get ahead of any possible tariffs. The team was able to complete the application to the U.S. Foreign-Trade Zone Board and receive approval just before the start of the 2025 government shutdown.

Client Impact & Results

After activating the FTZ with U.S. Customs & Border Protection, the company expects to save at least $50,000 a year, regardless of what happens with the tariffs. In addition, the company is hoping to expand its business in foreign countries, and the Foreign-Trade Zone will allow it to avoid substantial duties on those exports.