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A Foreign-Trade Zone (FTZ) is a designated area within the United States where imported goods can be stored, processed, or manufactured without being subject to customs duties until they enter U.S. commerce.
FTZs help businesses reduce costs by deferring, reducing, or eliminating import duties, making international trade more efficient. These zones operate under U.S. Customs and Border Protection (CBP) oversight, ensuring compliance with trade regulations. Many companies use FTZs to streamline supply chain operations and improve cash flow by delaying tariff payments.
If your business imports goods, an FTZ can significantly reduce costs by deferring duties and taxes until products are ready for sale. It allows for duty exemption on re-exported goods, helping you remain competitive in the global market.
You can also consolidate shipments, reducing customs processing fees and expediting distribution. By partnering with a 3PL provider operating within an FTZ, you gain access to streamlined logistics, optimized inventory management, and enhanced supply chain efficiency.
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.
Foreign-Trade Zones are essential for companies involved in global trade because they provide cost-saving opportunities and operational flexibility. By using an FTZ, businesses can store goods without immediately paying duties, allowing them to manage inventory more effectively and improve cash flow. This is especially beneficial for manufacturers and distributors dealing with high-volume imports.
For example, a top 3PL logistics provider managing an FTZ-enabled warehouse can offer clients reduced duty costs and faster customs clearance. A company importing auto parts can store components in the FTZ, assemble them within the zone, and only pay duties on the final product when it is sold in the U.S. market, increasing efficiency and profitability.
