Foreign automakers operating in the U.S., such as Toyota, Nissan, BMW, Daimler, and Hyundai, are much more active in the use of FTZs, since they use far more imported auto parts that benefit from duty deferral and duty avoidance for offshore exports from the FTZ. Auto Plant FTZ Scenarios: The examples below use a common set of assumptions about a single auto plant and its import levels...
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They demonstrate how an auto plant using a FTZ has worked in the past, why it does not work today, and finally what the effect of the “Trade Agreement Parity Proposal” would be on an auto plant using a FTZ: PREVIOUS FTZ PRACTICE (Pre-WTO Uruguay Round) An auto company that operates a 200,000 annual unit capacity plant anywhere in the USA, utilizing a FTZ— was able to import automotive parts and materials duty free into the FTZ that normally would pay an average 3...
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