Selling product and services overseas is a great strategy for increasing sales in markets that are often growing at a faster rate than those in the United States. As the home of a Fortune 500 company, Greater Peoria is already has the global logistics network to get your business where it needs to go. If your business is interested in selling product overseas, we have a wide variety of resources to help you get started.
Illinois SBDC International Trade Center
Since 1989, the Illinois SBDC International Trade Center at Bradley University has helped hundreds of Illinois companies take advantage of the potential of the international marketplace. The ITC expanded in 1994 to include specialized assistance to ensure exporters obtain the benefits associated with Free Trade Agreements (FTAs), including NAFTA. We help manufacturing and service companies make the right move at the right time. Working together, more than 500 companies have expanded their export sales by more than $400 million.
Foreign Trade Zones
Foreign-Trade Zones (FTZ) are secure areas under U.S. Customs and Border Protection (CBP) supervision that are generally considered outside CBP territory upon activation. Located in or near CBP ports of entry, they are the United States’ version of what are known internationally as free-trade zones.
Foreign Trade Zone 114 is a multi-modal zone (rail, air, river, road) serving the West Central, Central and East Central Illinois Region, providing over 2 million square feet of warehousing and distribution space available for General Purpose Zones usage and four Sub-Zone sites.
Our Foreign Trade Zone can be beneficial to businesses:
- When they assemble, manufacture, process or manipulate products consisting of foreign or co-mingled foreign and domestic products
- When their cost of products or shipping are increasing faster than inventory turnover
- When they import products that:
- are subject of U.S. Customs duties
- are subject to import quotas
- are subject to an inverted tariff on either the finished products or the component parts
- need inspection, marking, labeling, repair, destruction, repackaging, testing, sampling or cleaning before entering U.S. Customs territory
- need to be stored for an uncertain time period
- need to be displayed for potential buyers
- will be re-exported, in whole or in part
Foreign Trade Zone Benefits
Effective Cash Flow
Funds are not tied up paying U.S. Customs duties or posting bond while goods are held within the zone. Duties on foreign goods intended for domestic consumption are levied only at the time goods are removed from the zone and only on quantities actually removed. As a result, sale proceeds are available at the same time duties are due.
Foreign goods can often be processed in a Foreign Trade Zone, reducing U.S. Customs duties, since manufactured goods are often subject to lower duties than components.
Companies avoid customs duties on moisture, dirt, culls, defective merchandise, scrap, other waste and shrinkage.
Assembly Cost Savings
An industrial product that requires assembly or manufacture can often be assembled in a Foreign Trade Zone resulting in a considerable duty advantage over comparable product made on foreign soil.
Convenience and Flexibility
The Foreign Trade Zone can be used as a staging area for inventory and spare parts, considerably reducing lag time inherent to delivery from abroad.
Prospective buyers may be given the opportunity to see samples of goods stored in a Foreign Trade Zone.
If the goods being imported are subject to a quota, the goods may be stored in a Foreign Trade Zone pending the issuance of additional quota allocations.
A Foreign Trade Zone provides particular flexibility in instances where local components or products are to be added to the goods prior to injection into the domestic economy.
Foreign Trade Zone 114 Locations
General Purpose Zone Sites
Peoria Barge Terminal Inc.
88 Acres with 7 existing buildings (200,000 square feet of warehousing space)
100-ton and 2 50-ton cranes, large forklifts and end loaders
Located on the Illinois River, accommodating multi-modal loading and unloading.
1925 Darst Street
Peoria, Illinois 61607
United Facilities, Inc.
150 Acres with 3 existing buildings totaling 405,000 square feet
603 North Main Street
East Peoria, Illinois 61611
G & D Integrated
2 Acres with 1 existing building (24,000 square feet)
5703 Smithville Road
Located at Greater Peoria Airport
Bartonville, Illinois 61607
KMI Sales, Inc.
37 Acres with 2 existing buildings. 18 indoor docks
278 Kock Street
On main line of Illinois Central Railroad
Peoria, Illinois 61554
Inventory Technology, Inc.
50 Acres with 2 existing buildings (500,000 square feet)
Mossville Industrial Park
Mossville, Illinois 61523
Located at Greater Peoria Airport
6409 W. Smithville Rd
Bartonville, IL 61607
100 NE Adams
Peoria, Illinois 61602
Mitsubishi Motors Manufacturing of America, Inc.
100 N Mitsubishi Motorway
Normal, Illinois 61761
E.I. Dupont de Nemours and Company, Inc.
2830 U.S. Highway 24
El Paso, Illinois 61738
2802 West Bloomington Road,
Foreign Trade Zone vs. Bonded Warehouse
|FUNCTION||FOREIGN TRADE ZONE||BONDED WAREHOUSE|
|Customs Entry||A Foreign Trade Zone is not considered within customs territory. Customs entry is filed when goods are removed from the FTZ.||A bonded warehouse is within the US Customs territory. Customs entry must be filed for goods to enter the warehouse.|
|Customs Bond||A Bond is not required for goods in a FTZ. Admissions to the zone are covered under the FTZ operators Customs Bond.||Customs Bonds are required for all warehouse entries.|
|Permissible Cargo||Foreign and domestic goods may be placed in a FTZ.||Only foreign goods may be placed in a bonded warehouse.|
|Payment of Duty||Duties are due only upon entry for US consumption.||Duties are due prior to release from bonded warehouses.|
|State and Local Investory||Foreign goods are not taxed as well as domestic goods that are to be exported are not taxed.||All goods are taxed.|
|Manufacture of Goods||Manufacturing is permitted within the FTZ. Duty is payable on either the imported components or the finished product, whichever has the lower rate. There is no duty on waste material or on value added manufacturing such as labor, overhead and profit.||Manufacturing is not permitted in a bonded warehouse.|
|Appraisal and Classification||The tariff rate and the value of goods may be determined either at the time of admission into a FTZ or when goods leave at the user’s discretion.||Tariff rates and the value of goods is determined immediately upon entering a bonded warehouse.|
|Storage Period||Unlimited.||Not to exceed five years.|
|Permitted Activity||Goods may be: sorted, destroyed, cleaned, graded, mixed with foreign or domestic goods, labeled, assembled, manufactured, exhibited, sold and repacked.||Goods may only be cleaned, repackaged and sorted under customs supervision. Duty is owned on entire shipment entering a bonded warehouse including waste and damaged goods.|
|Domestic Goods||May be admitted without customs permit and co-mingled with foreign goods.||May not be admitted.|
|Control of Goods||FTZ has full control of goods 24 hours a day.||Customs has primary control of goods. The goods can only be inspected and transferred during regular working hours in a bonded warehouse.|
|Movement of Goods||Movement of goods is relatively unrestricted in and out of an FTZ.||Movement of goods is limited in a bonded warehouse. Specific customs approval is required for each movement.|
Foreign Trade Zone Port of Entry
PORT OF ENTRY CONTACT
U.S. Customs & Border Protection
Peoria International Airport
5701 W. Smithville Rd
Bartonville, IL 61607
Phone: (309) 671-7047
Fax: (309) 671-7066