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One-Time Benefit & Duty Deferral Explanation

IMS Worldwide, Inc.

Uncleared Merchandise

Cleared Merchandise

Distribution Center/Warehouse

Foreign merchandise admitted into FTZ; no duties paid at Customs port of entry.  Shipping duty-paid merchandise using FIFO inventory record-keeping; no duties paid at point of shipment either.

Formerly duty-paid merchandise being shipped from facility

DURING FIRST INVENTORY TURN OF ACTIVE FTZ OPERATIONS

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