Foreign-Trade Zone

FTZs let importers defer duty, avoid duty on re-exported or scrapped goods, and in some cases pay a lower rate on finished goods. Some tariff actions have limited FTZ benefits, so confirm treatment for each duty type.

Can an ecommerce fulfillment center operate in a foreign-trade zone?

Yes. Some 3PLs operate FTZ sites so that duty is paid only on units shipped to US customers, while exports are duty-free. Running inside an FTZ requires inventory control systems that meet CBP requirements.

• Bonded WarehouseA CBP-authorized facility where imported goods can be stored without paying duty for up to five years from import, with duty due only when goods are withdrawn for US consumption.
• Duty DrawbackA refund of up to 99% of duties, taxes, and certain fees paid on imported goods that are later exported, destroyed, or used to make exported products.
• Landed CostThe total cost of getting a product to your warehouse ready to sell: purchase price plus freight, insurance, duties, tariffs, brokerage, and handling.
• Importer of RecordThe party legally responsible for an import into the US, including correct classification, valuation, and origin, payment of duties, and compliance with all import laws.