Kanban Logistics Receives Foreign Trade Zone Activation

APRIL 11, 2008
(Tarboro, NC) -- Kanban Logistics of Tarboro NC announces the formal activation by the Department of Homeland Security of Foreign Trade Zone (FTZ) #214 – 2 at their Kingsboro Industrial Park Rocky Mount NC location. The site has been designated a General Purpose FTZ since 2003. Activation of a zone becomes effective when a domestic manufacturer/distributor begins the process of receiving/shipping goods through the designated area under the guidance of the United States Customs and Border Patrol Agency. The implementation of the FTZ at the Kingsboro Industrial Park will reduce tariff/taxes and supply chain costs to local and regional businesses who utilize the zone enabling them to more evenly compete in the growing global economy.

Kanban holds the title of Foreign Trade Zone #214 Site #2, which falls under the umbrella of the Global TransPark Authority in Kinston, NC. Billy Wooten, CEO of Kanban Logistics, is pleased to have this activation finalized, and is excited about providing local industries the opportunity to reap substantial financial benefits within their supply chain.

Legally, a Foreign Trade Zone is a location within the U.S. that the Government considers outside the U.S. Custom’s territory. Imported merchandise entering the FTZ at Kanban Logistics may be stored, exhibited, tested, sampled, relabeled, repackaged, repaired, manipulated, mixed or cleaned. It may also be salvaged, processed, destroyed, assembled, or manufactured. If the final product is exported, no U.S. customs duty or excise tax is due. If the final product is imported into the U.S., customs duty and excise taxes are due only at the time of transfer from the FTZ and formal entry into the U.S. occurs. This duty deferral can be a significant benefit for clients, as well as with duty elimination with exports. Goods may remain in a zone indefinitely, whether or not subject to duty, and some clients find that quota restrictions with their products may be avoided by admitting that merchandise into an FTZ. Users of FTZs have more flexibility for merchandise and may eliminate delays related to U.S. Customs clearances. Also, federal criminal sanctions and Customs security requirements are deterrents against theft, which may result in lower insurance costs and fewer incidents of loss for imported goods into the Foreign Trade Zone.

Kanban’s Rocky Mount facility has more to offer than just its activated Foreign Trade Zone status, however. This facility on Kingsboro Road is considered one of Kanban’s premier sites offering 175,000 sq. ft. of storage space with rail siding and full service transload yard. This facility is also a “Superior” rated food grade facility by AIB International, giving food and pharmaceutical companies the ideal specifications for cleanliness.

For more information on Kanban Logistics, please call 1-800-451-7522. From trucking and warehousing to importing and repackaging and kitting, Kanban Logistics offers industries a complete package of supply chain solutions.