Tax Free Zones
There are six Foreign or Free Trade Zones (FTZ) in North Carolina. Two are strategically located within in the Eastern Region. Throughout the state, several subzones are also approved for use by individual manufacturers.
Foreign or domestic merchandise may enter these areas without a formal customs entry, or the payment of customs duties, or government excise taxes and without a thorough examination.
If the final product is exported from the United States, no custom duty is levied. If the final product is imported into the U.S., duty and excise taxes are due at the time of transfer from the foreign trade zone and formal entry is made into the U.S. Duty is paid on the product itself or its imported parts, whichever is lower.
Generally, merchandise is exempt from payment of duty even if it is:
- Used in a manufacturing process
- Combined with other domestic or foreign materials
- Displayed for sale
Spoiled or damaged goods or waste materials may be disposed of or re-exported without payment of duty.
Businesses save on personal property and sales and use taxes since state and local governments generally do not impose such taxes on items in the FTZ. Additional savings on interest, labor and shipping costs may also result.
New capital investment by firms who might otherwise have located in foreign countries is another important advantage. This new investment activity spurs development of support industries.
For information on a specific Foreign Trade Zone in North Carolina, please contact:
N.C. Ports Authority
113 Arendell St.
Morehead City, NC 28557
PO Box 9002
Wilmington, NC 28557
fax: (910) 397-1532
Global Transpark Authority
2780 Jetport Road, Ste. A
Kinston, NC 28504
PO Box 1476
Kinston, NC 28503
fax: (252) 522-5778
(252) 522-4929 ext. 714
Penny Whiteheart, Vice President, Research & Technology
Michael Staley, Vice President, Finance & Administration
For general information about Foreign Trade Zones in North Carolina, contact:
Jean Davis, Director of International Trade Division
North Carolina Department of Commerce
301 N. Wilmington St.
4320 Mail Service Center
Raleigh, NC 27699-4320