Avnet announced that its McKemy Distribution Center in Chandler, Arizona, has been authorized by the US Customs and Border Protection (CBP) as a Foreign-Trade Zone. This authorization reduces the tariff recovery fees for Avnet’s international customers and domestic customers’ exports. In addition, the Foreign-Trade Zone authorization also increases Avnet’s global logistics efficiency and improves cash flow.

As an authorized Foreign-Trade Zone, Avnet can import products into the United States and store products there without tariffs, delaying payment of tariffs until the product leaves the free trade zone and reaches destinations in the United States.

The authorization contributes to Avnet’s logistics efficiency by ensuring that products no longer need to formally clear customs into U.S. commerce immediately upon receipt. This means that payment on duties and tariffs can be deferred until foreign products exit the zone, resulting in improved cash flow for the company. Products can transit through the facility to overseas destinations without incurring the same duties and tariffs as those entering United States commerce, benefiting Avnet’s international customers.

“Avnet is focused on mitigating risk, minimizing costs, and avoiding supply chain disruptions that can pose significant challenges for our customers amid complex and changing international trade regulations. We’re focused on reducing time to market for our customers, and leveraging the McKemy Distribution Center as an FTZ further improves efficiencies in our distribution network,” said Vincent Cellard, vice president of operations and supply chain at Avnet.