Strained supply chains have products backed up around the world, with international shipping being especially susceptible. Customers beginning clinical trials can avoid this headache by shipping pharmaceutical substances or drug products to us, which we will hold in the FTZ while they await their Investigational New Drug (IND) permit from the FDA. When it is then approved, that product will be ready for prompt importation and distribution for use in drug product manufacturing or clinical trial.
foreign trade zone
The pharmaceutical space at our North Kansas City facility is licensed as a Foreign-Trade Zone (FTZ), so we can receive foreign merchandise in our facility without making U.S. customs entry (importation).
This means that MRIGlobal customers who need the versatility of storage and international distribution of their research materials without importation can use our FTZ, which is located in the same facility as our repository and biorepository.
This distinctive offering is appealing to customers across the industry and especially those small or virtual manufacturers who may not have access to their own space. This combination of offerings is exceptionally unique, providing clients the opportunity to have their needs met in a single, centralized facility.
For pharmaceutical substances intended to be manufactured into a product or a drug product that is brought into this country, using the FTZ can potentially help lower duty payments. Once imported, customers can then choose to pay the duty rate when it was admitted to the FTZ or the duty when it is imported into the U.S., potentially lowering the rate. Additionally, duties are paid at time of entry to the U.S. rather than admission to the FTZ, which defers duties until importation.
These same substances and products can be brought into the U.S. and stored in the FTZ for an indefinite period and until they’re needed. If that product is not used in the U.S., but instead shipped to another country for use or further manufacturing, it will not be subject to duties in this country. By eliminating U.S. duties, manufacturers can significantly reduce their costs.