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With a 66,000 sq. ft. manufacturing and assembly facility that imports components from around the world, Reilly International’s industry-leading client identified that establishing a Foreign Trade Sub-Zone could result in significant savings in import duties. With the FTZ, foreign parts would remain inside the zone as they were being assembled into a finished, assembled product. The finished product would then be “imported”, with duty applicable to the product as a whole rather than on all of the individual parts.
Solution
Realizing they needed to find a firm with the depth of expertise necessary to launch and maintain such a program, the company sought out the most appropriate U.S. Customs expertise available, and their search led them to select Reilly International.
Reilly got to work understanding the details of their client’s operations and supplying the software to help manage day-to-day compliance. Working with U.S. Customs, Reilly created a customized SOP (standard operating procedure) to guide all activities. To help the company get the most value out of the program, Reilly put a customs expert on site in their facility for a full 60 days. This expert personally trained staff members to the point where they could confidently execute the program on their own.
Reilly International also arranged dedicated ongoing support for their client’s needs. To maintain the program, Reilly facilitates as needed and double-checks paperwork. In addition, regularly scheduled audits help ensure ongoing compliance, making sure that the company stays on track with evolving U.S. Customs rules and procedures, as well as part changes and reconciliations.
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Results
The large manufacturing firm has realized significant cost savings from the FTZ program implemented by Reilly International. The savings have come not only from a major reduction in duties, but also from reduced staff time necessary to manage the program. In addition, the company has seen greatly increased cash flows as a result of the deferred duty.
Reilly took the time at the beginning to understand their client’s operations and unique business challenges. As a result of this discovery and the setup that followed, the company has been able to meet changing customer needs and manufacturing demands without sacrificing FTZ regulatory requirements. And while the company’s staff is able to handle most issues on their own, when they do need assistance, Reilly International is there for them with dedicated resources and swift solutions.
“Reilly is a very professional organization with an exceptional understanding of U.S. Customs issues.”
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