While a Foreign Trade Zone (FTZ) can offer great benefits and substantial savings to a company, we understand that the program may not be right for everyone. Many times, dependent on the operations that need to take place, a U.S. bonded warehouse may fulfill the needs of a company, while in other cases, an FTZ may bring considerable savings. To have a better understanding of which program is best to use, below are some of the major differences between an FTZ and a bonded warehouse.
Foreign Trade Zone (FTZ)
No entry required
Entry required to admit goods into warehouse
Foreign and Domestic Goods
Foreign goods only
Only upon entry into the U.S. market
Owed prior to release of goods from the bonded warehouse