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The first sentence of the 4th paragraph of your second link would seem to dispute your strategy. "Under zone procedures, the usual formal CBP entry procedures a
by lozaning 8y ago
The first sentence of the 4th paragraph of your second link would seem to dispute your strategy. "Under zone procedures, the usual formal CBP entry procedures and payments of duties are not required on the foreign merchandise unless and until it enters CBP territory for domestic consumption"
So the minute your startup sells me a chip for use in the US and it then leaves the free trade zone the tariff becomes due.
- will_brown 8y agoIf I am importing a chip and reselling it I am not a manufacturer and yes I pay the tariff. If I import the chip and use it as a component in my manufacturing of the end product I don’t pay the tariff on that chip. The idea of the startup, as I mentioned in another comment, would be creating the zone and charging manufacturers to use my Zone. Like an Uber or On demand or WeWork (whatever SV analogy works best for you) of Foreign Trade Zones.
- CodeCube 8y agoAnd these "startups" would certainly charge a premium for access to their services/zone ... so the "end user" still ends up footing the bill.