Challenge: Since February 2018, the cost of duties for U.S.-China operations has substantially grown. There are now $550 billion in tariffs applied exclusively to Chinese imports, while China has imposed $185 billion on U.S. goods.
Solution: Companies have turned to U.S. foreign trade zones (FTZ) as a method to reduce, defer or mitigate the impact of tariffs. The FTZ No. 49 incentive program at the Port of New York and New Jersey is not operationally specific, and its benefits are contingent upon companies’ supply chain and business operations.
Results: Operators have found the program at Port of New York and New Jersey to be effective in relieving, reducing and mitigating tariff costs. Interest in FTZ 49 has increased significantly — including the number of applications submitted over the past several months as tariff challenges continue.
About the Solution Provider:
Founded in 1921, the Port Authority of New York and New Jersey is a bi-state transportation agency that builds, operates, and maintains many of the country’s most important transportation and trade infrastructure assets. The agency’s network of aviation, ground, rail, and seaport facilities is among the busiest in the U.S.
