An activated zone refers to a designated area within a Foreign-Trade Zone (FTZ) where goods can be stored, handled, and processed, with specific customs procedures allowing businesses to defer or eliminate customs duties.
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An activated zone refers to a designated area within a Foreign-Trade Zone (FTZ) where goods can be stored, handled, and processed, with specific customs procedures allowing businesses to defer or eliminate customs duties.
An activated zone is a part of an FTZ where goods are officially considered "in bond," meaning customs duties are not paid until the goods enter U.S. commerce. This zone enables businesses to perform operations like assembly, manufacturing, or packaging without incurring immediate duties or taxes. Activated zones are crucial for reducing costs and increasing flexibility for international trade operations.
In an activated zone, your business can store goods, process them, or even change their form without having to pay duties immediately. You only pay duties when products leave the FTZ and enter U.S. commerce, or you can avoid duties entirely if goods are re-exported.
This system gives your business more flexibility and cost savings by reducing the upfront cost of importing goods. For logistics operations, activated zones streamline inventory handling and ensure goods are only taxed when necessary.
Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.
Activated zones are essential for businesses that import goods and want to delay or avoid paying customs duties. By using an activated zone, companies can keep goods in the zone until they are needed, potentially reducing costs if the goods are re-exported or only partially entering U.S. commerce. For businesses in 3PL logistics or warehousing, activated zones help clients optimize inventory management, minimize tariff expenses, and maintain smoother cash flow.
For example, a clothing manufacturer can store fabric and components in an activated zone, then assemble and export finished products without paying duties on the raw materials. This keeps operational costs down and improves financial efficiency.
