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Ensure compliance with foreign-trade zone software

Establish and manage foreign-trade zones and bonded warehousing operations to strengthen your global trade operations and reduce costs.

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Discover how companies are utilizing FTZs to mitigate tariffs.

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Key Benefits of Foreign-Trade Zones

Duty Exemption and Reduction

Take advantage of FTZ codes and regulations to defer or reduce customs duties and tariffs.

Reduce Merchandise Processing Fees

Consolidate multiple shipments into a single weekly entry to lower these fees.

Enhanced Competitiveness

FTZs help U.S. businesses compete more effectively in the global marketplace.

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Key Capabilities to Better Manage Supply Chain Costs

FTZ compliance

Accelerate the process for establishing an FTZ as well as ensure your company’s compliance with documentation and reporting requirements.

Inventory control and recordkeeping

QAD’s solution tracks, by value and quantity, and prepares weekly estimates for you by Harmonized Tariff Schedule of the United States (HTSUS).

eFiling

You can create all necessary reports and electronic files for filing with Customs such as 3461/7501, e214, ISF ACE and others.

Auditing and reporting

Easily prepare for any CBP review or audit with supporting documents such as BOL, invoices, in-bond documents and others to boost efficiency.

Estimate Your FTZ Cost Savings

For companies with US-based operations, FTZs offer significant advantages to your business, primarily by enhancing your competitive position. The reduction and deferral of duty payments provide a cash flow advantage to importers and exporters. In essence, FTZs serve as a powerful tool for US-based businesses engaged in international trade, offering both cost savings and financial flexibility. 

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Frequently Asked Questions

What is a Foreign-Trade Zone (FTZ)?

The United States Foreign-Trade Zones program was established in 1934 when Congress passed the US Foreign Trade Zones Act. The act allowed for the creation of “Foreign-Trade Zones” — that is, specifically designated, secure areas under the oversight of US Customs and Border Protection (CBP) but outside US commerce. In essence, it allows domestic activity involving foreign items to occur prior to formal customs entry. Duty-free treatment applies to items that are re-exported and duty deferred payments apply to items sold in the U.S. market. This neutralizes any customs advantages available to overseas producers in competition with US-based producers. FTZs are located in, or near, US Customs Ports of Entry and they are in all 50 states and Puerto Rico.

Which industries benefit from an FTZ?

The benefits of FTZs are very much dependent on individual company circumstances. However, there seems to be a growing number of industries and types of business operations that find that the FTZ program improves their bottom lines. In the 1980s, automobile manufacturers went for FTZs in a big way. Now auto parts producers have followed them, and the list of these just keeps growing. Pharmaceutical companies and their contract manufacturers are also big users of FTZs, as are other high-tech industries involved in the development of clean or renewable energy products. Also, distribution and order fulfillment operations — even those which handle duty free products — are making ever increasing use of FTZs. The same goes for 3PL operations. Any company that is importing — even at a modest level — should look at what the FTZ program can offer.

What is the weekly entry fee?

The FTZ Weekly Entry process became available for both distribution and manufacturing operations in the year 2000. This enables the FTZ Operator to file a single weekly estimate for the goods it anticipates to ship into US commerce during the following 7-day period. The FTZ Operator can also file an Entry Summary for all the goods it shipped into US commerce during the previous 7-day period.