FTZ vs. Bonded Warehouse

Foreign-Trade Zone

  • Outside Commerce of the US
  • Advanced Inventory Methods
  • Combine Domestic and Foreign Merchandise
  • Reduced Customs Liabilities for Imports
  • Direct Delivery; receive merchandise 24/7 without Customs prior clearance
  • Estimated Weekly 7512
  • Estimated Weekly Entry (One MPF per Week)
  • No Customs Entry - Admitted on CBP 214
  • Choose PF or NPF status
  • Manufacturing may occur in zone with FTZB approval
  • Broad range of scrap/waste savings
  • Merchandise can remain in FTZ indefinitely

Bonded Warehouse

  • Warehouse Entry into the Commerce
  • Limited Inventory Methods
  • May not combine Domestic and Foreign
  • Increased Customs Involvement/ Increased Customs Liabilities
  • No Direct Delivery
  • No Weekly 7512
  • No Weekly Entry (Merchandise Processing Fee charged per Entry)
  • Entry made on CBP 7501
  • Duty paid at rate in effect at withdrawal
  • Manufacturing in Class 6 for export only
  • Limited scrap/waste savings
  • Can only remain for 5 years from importation