Case Study: FTZ Subzone for API Clearance
FTZ Subzone for API Clearance
Challenge
A customer needed to change from a domestically sourced API (active pharmaceutical ingredient) to an alternative, foreign-made API for a commercial product while avoiding any disruption to patient supply during the switch.
Approach
JHS established a Foreign Trade Zone (FTZ) subzone with the US government that covered the entire Spokane facility. FTZs can offer many benefits, including logistical flexibility, tax savings, faster speed-to-market, and free movement of goods. In this case, the FTZ saved the customer time and money by allowing JHS to continue manufacturing the product while collecting stability data for a future FDA filling on the alternative API source.
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