FTZ 87—Port of Lake Charles
On July 22, 1983, the Lake Charles Harbor & Terminal District (“Port of Lake Charles”) received a Grant of Authority to establish, operate, promote, and maintain Foreign-Trade Zone 87. FTZ 87 has five (5) general purpose sites and five (5) activated subzones. Foreign-Trade Zone benefits, combined with the Port’s strategic location on the Gulf of Mexico, offer significant advantages for international shipping.
What is a foreign-trade zone?
By definition, a foreign-trade zone is a secured area located within the United States, but technically considered to be outside the territory of U.S. Customs.
Foreign-trade zones were authorized by the Foreign-Trade Zones Act of 1934. Oversight is provided by the Foreign-Trade Zones Board, an independent agency within the Department of Commerce. Local U.S. Customs & Border Protection offices provide supervision and control as the representative of the FTZ Board.
The foreign-trade zone program is designed to lower the cost of doing business and stimulate economic growth and development in the U.S. by allowing companies to defer, reduce, or eliminate U.S. Customs duties. Certain types of merchandise may be brought into a zone without a formal Customs entry, import quotas, and most other import restrictions.
There are two types of foreign-trade zones:
1. General Purpose Zone—Established for multiple activities by multiple users
2. Subzone—Special purpose zones for use by one company for a specific activity
Merchandise entering a zone may be:
What are the benefits of a foreign-trade zone?
The following are examples of benefits that FTZ zone users may be eligible for:
• Delaying payment of U.S. Customs duties and excise taxes until goods leave the zone to enter U.S. markets.
• Paying duty only on the value of imported components when a company uses a combination of domestic and imported materials to manufacture or process goods within the zone.
• Reducing U.S. Customs duties on goods manufactured or processed in the zone when imported components have a higher duty rate than the finished goods (inverted tariff).
• Eliminating U.S. Customs duties and fees on goods that a company re-exports.
• Holding excess goods in the zone to avoid import quota restrictions, then releasing them during the next quota period.
• Transferring in-bond merchandise between FTZs for manufacturing purposes and deferring duty until the product enters the U.S. marketplace.
• Paying reduced or no duties on nonconforming, damaged, scrapped, or obsolete components or goods.
• Lowering other costs, such as inventory, insurance, and cost of sales, as no duty is paid on labor, overhead, or profit from FTZ production operations.
Foreign-Trade Zone NO.87
Download the Zone Schedule for FTZ 87.
FTZ 87 consists of five (5) general-purpose sites as described below:
SITE 1: 40.93 acres located inside the general cargo area of the Port of Lake Charles at 150 Marine Street.
SITE 3: 11 +/- acre warehouse facility located at Fournet and Ford Streets in Lake Charles.
SITE 5: 365.27 +/- acres Port’s Industrial Park East on Highway 397, 1 mile south of Interstate 10.
SITE 6: 1628.27 +/- acres at Chennault International Airport http://www.chennault.org/
FTZ 87 Consists of five activated subzones:
Subzone 87A: Phillips 66 Company
Subzone 87B: Citgo Petroleum Corporation
Subzone 87C: Halliburton Energy Services, Inc.
Subzone 87E: Sasol Chemical (USA), LLC
Subzone 87F: Westlake Chemical Corporation
For more information, please contact:
Sharon Edwards, FTZ Manager
Port of Lake Charles
P. O. Box 3753
Lake Charles, LA 70602
Phone: 337-493-3504 Fax: 337-493-3502
Foreign-Trade Zones Board: http://ia.ita.doc.gov/ftzpage/
U. S. Customs and Border Protection: http://www.cbp.gov/border-security/ports-entry/cargo-security/cargo-control/foreign-trade-zones/about
National Association of Foreign-Trade Zones: http://www.naftz.org/