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Foreign Trade Zone
Puerto Rico has the largest noncontiguous Foreign Trade Zone (FTZ) project in the United States. FTZs allows companies to obtain significant financial savings, since raw material, components, and finished goods could be stored or processed within a zone while differing or eliminating the custom duty rate of such merchandise. If items are shipped to non-US destinations, the payment of duties is exempted.
Some benefits of operating in FTZs include:
Deferment of customs duties.
Deferment of Puerto Rico excise taxes.
100% exemption on Municipal License Taxes on exports to foreign countries.
100% exemption on tangible property, and property and equipment used within the operation.
60% exemption on the value of the intangible property.
According to the 2012 Foreign Trade Zones Board report, Puerto Rico ranked 13th in imports and 11th on exports among the top 25 FTZs in the United States (out of 174 active zones).