The Weekly Entry Filing for merchandise leaving the Foreign-Trade Zone (FTZ) involves submitting a report to U.S. Customs and Border Protection (CBP) detailing the goods exiting the zone during the week. This filing includes information such as the merchandise's tariff classification, value, and the identity of the importer. If the goods are being consumed within the U.S., applicable customs duties must be paid. Companies utilizing FTZs can ship unimpeded into U.S Consumption to fulfill DTC or B2B orders.
Customs collects the MPF, which is assessed at 0.3464% (with a minimum of $31.67 and a maximum of $614.35) against each entry filed. The FTZ program allows consolidation from per container entries into weekly entries, often resulting in substantial savings. Instead of being assessed the maximum per container, you are assessed the maximum once per week. For Example, based on the example data of importing 500 containers, your annual MPF fee is $307,175 versus a weekly entry amount of 31,946.20 which would result in savings of $275,228.80 per year.
An array of activities can be undertaken to enhance, alter, or refine goods prior to their entry into the U.S. customs territory. These activities encompass assembly, manufacturing, sorting, testing, labelling, repair, and even display, all tailored to meet specific market demands or regulatory standards before the goods are introduced to the U.S. market. The manipulation of items within FTZ warehouses yields numerous advantages, including cost savings, enhanced logistical efficiencies, and greater flexibility in inventory management. These benefits underscore the strategic value of FTZ operations for businesses seeking to optimize their supply chain processes while ensuring compliance with customs regulations.
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FTZs allow companies to defer the payment of customs duties until the goods leave the zone and enter the U.S. commerce. By deferring duty payments until goods leave the FTZ, companies can better manage their cash flow. This can free up capital for other business needs and investments. For example, based on having 12,000 units on hand at a value of 15,000,000 would equate to 1,650,000at an 11% duty rate.
FTZs streamline customs procedures, reducing administrative burdens and ensuring smoother transactions. Also, FTZs provide Duty Exemptions on exported goods, leading to significant cost savings for companies. For example, if you import goods that in turn will be exported, as opposed to paying two sets of Duties, the U.S. Duty will be eliminated.
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