Foreign Trade Zone 20

Foreign Trade Zone 20

The Virginia Port Authority holds the Grant of Authority for Foreign Trade Zone (FTZ) 20, which covers all of Virginia Beach.

FTZs allow companies engaged in international trade-related activities to securely import, process, and ​export items, with duty payments deferred until they are brought out of the FTZ and placed for sale in the U.S. market.

What is a Foreign Trade Zone?​​

FTZs are areas that are geographically inside the U.S. but are legally considered outside its customs territory. Companies that locate in FTZs can benefit by using special procedures to encourage U.S. activity by reducing, eliminating, or delaying duties.

What activities are permitted in a Foreign Trade Z​​one?

Merchandise in a zone can be assembled, cleaned, displayed, destroyed, exhibited, manipulated, manufactured, mixed, processed, relabeled, repackaged, repaired, salvaged, sampled, stored, and tested. Retail trade is prohibited in zones.

What are the advantages of locating in a Foreign​​ Trade Zone?

    • Duty exemption: No duties or quota charges on re-exports.
    • Duty deferral: Customs duties and federal excise tax deferred on imports.
    • Logistical benefits: Companies using FTZ procedures may have access to streamlined Customs procedures (e.g., "weekly entry" or "direct delivery").
    • Other benefits: Foreign goods and domestic goods held for export are exempt from state and local inventory taxes. FTZ status may also make a site eligible for state and local benefits that are unrelated to the FTZ Act.

Where can a Zone Site be located?

Zone sites must be within or adjacent to a U.S. Customs and Border Protection (CBP) port of entry.

The adjacency requirement can be satisfied if one of the following factors is met:

  • The zone or subzone site is within the limits of a CBP port of entry.
  • The zone or subzone site is within 60 statute miles of the outer limits of a CBP port of entry.
  • The zone or subzone site is within 90 minutes of driving time from the outer limits of a CBP port of entry as verified by the CBP Service Port Director.
Contact Information​ for FTZ 20

Laura Swankler

The Port of Virginia​
lswankler@portofvirginia.com
(757) 683-2136