International Trade

Foreign Trade Zones

Logistical Solutions

Customs Brokerage

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CBP & FTZ Literature & Document Center

CBP & FTZ Forms Documentation Center Download CBP Form 214 - Application for Foreign Trade Zone; Admission and/or Status Designation

Download CBP Form 216 - Application for Foreign Trade Zone Activity Permit

Activation Application Flow Chart

Activation Checklist

Blank FTZ Analysis

Cargo Security Standards and Specifications (TD 72-56)

IDS Decision Chart

Processing Authority Application Flow Chart

Processing Authority Checklist


Cost Benefit Analysis of a Foreign Trade Zone and ITC Diligence



What is a Foreign Trade Zone?

A Foreign-Trade Zone is a secure, access-restricted, Customs & Border Protection privileged area in or near a U.S. port of entry where merchandise both foreign and domestic may be admitted, stored, exhibited, manipulated, temporarily removed, manufactured, or destroyed duty-free! Duties, certain user fees and taxes are only assessed on products that are transferred out of the FTZ and imported into the United States for consumption. Products that are transferred out of the FTZ and exported abroad are exempt from any duty, user fees or taxes.



What are the benefits of a Foreign Trade Zone?

  • Duty Deferral - Duties are only paid when imported merchandise is entered into the U.S. Customs territory.
  • Duty Avoidance - There are no duties paid on merchandise exported from a FTZ, transferred to another zone or destroyed. This eliminates the need to manage costly and time consuming Duty Drawback programs.
  • Weekly Entry - Customs allow for a weekly entry processing, which benefits importers because they pay Merchandise Processing Fees capped at $485 on a weekly basis, versus per shipment basis.
  • Fee Deferral - Harbor Maintenance Fee is paid quarterly in a single payment.
  • Enhanced Security - By using a FTZ, the "internal controls" requirements of section 404 of the Sarbanes-Oxley Act are met and participants in the Customs Trade Partnership Against Terrorism (C-TPAT) program are eligible for additional benefits provided by Customs.
  • Expedited Logistics - Relocating CHB to your facility and expedite the delivery to your facility without customs clearance. Potential savings is up to two days.
  • Ease of Paperwork - Through automation of the FTZ receiving and the weekly entry program, paperwork is greatly diminished with all parties and the processes for approval are expedited dramatically.
  • Manipulation - All manipulations are authorized and completed without physical Customs supervision. Goods are allowed to enter an FTZ and have the following manipulations: clean, reparefix, improve in value, amend, exhibit, pick&pack, and many other functions.
  • Inverted Tariff - Duty Reduction
  • Avoid or expedite drawback
  • Tax exemptions
  • MPF reduction - Weekly entry
  • Greater flexibility
  • No bond required
  • Temporary removal
  • Indefinite storage
  • Fine avoidance
  • Requirements - Export / Destroy
  • JIT procedures - Direct delivery
  • Weekly entry - In bond / Export
  • Blanket permit
  • U.S. quota avoidance


What are the differences between a FTZ and a Bonded Warehouse?

  Bonded Warehouse Foreign Trade Zone
Formal Customs Entry A bonded warehouse is within U.S. A Foreign Trade Zone is not considered within U.S.
Formal Customs Entry A bonded warehouse is within U.S. Customs territory. Thus, Customs entry must be filed before goods enter a warehouse. A Foreign Trade Zone is not considered within U.S.Customs territory. Thus, customs entry is filed just prior to removal of goods from the Zone and only for amount of goods to be removed.
Customs Bond Required for all warehouse entries. No bond required! All admissions to a Zone are covered under FTZ operators Customs Bond. No additional bond is required.
Payment of Duty Merchandise is dutiable at the rate in effect at time of withdrawal. Duties are due only upon entry for U.S. consumption. The rate can be that which is in effect at time of admission or withdrawal.
State & Local Inventory Tax Tax is levied on January 1st of each year on all merchandise. Foreign merchandise is not taxed. Domestic merchandise to be exported is not taxed.
Permitted Activity Merchandise may only be cleaned, repackaged & sorted under Customs supervision. Merchandise may be stored, inspected, repackaged, repaired, tested, cleaned, sampled, displayed, manipulated, mixed, processed, assembled, salvaged, destroyed, or re-exported.
Waste & Damaged Goods Duty owed on entire shipment entering a bonded warehouse. No duty paid on waste, damaged or otherwise non-usable merchandise that is destroyed in the Zone.
Goods with Documentation Labeling Defects May not be admitted. May be admitted and problems corrected.
Domestic Merchandise May not be admitted. May be admitted without Customs Permit and co-mingled with foreign merchandise.
Drawback of Customs Duties or Federal Does not apply. May apply to goods admitted to the Zone if approved by Customs.


What are the advantages of CF214 Electronic Filing?

  • Dramatic minimization of paperwork requirements
  • Expedition of Customs release / approvals
  • Elimination of 90% of Customs workload
  • Increase in efficiency methods for Customs Broker/User/U.S. Customs
  • Opportunity to expand operation and/or lower costs due to cost and time savings
  • Create automation of FTZ process between User - Broker - Operator - U. S. Customs