What is the FTZ Program?
The Foreign Trade Zone (FTZ) program is a partnership of the U.S. government and private companies. Each approved location is specially-designated and considered to be outside of U.S. Customs territory. When cargo arrives in the country for an FTZ operator, it does not clear Customs at the Port of Entry. The cargo receives preferential treatment with duties deferred, reduced or eliminated. In addition, there are supply chain, inventory control and other savings realized.
What are the Benefits of the FTZ Program?
Capitol Warehousing is a Foreign Trade Zone (FTZ) Warehouse. This means we can significantly reduce your inventory carrying costs.
By importing into our FTZ, we can defer your customs clearance process, deferring all of your import tariffs and fees for as long as we hold your inventory.
Instead of paying the full value of the import tariff upon import of the container at the U.S. port of entry, you will instead only pay the import tariff for the product as you pull each item individually from our warehouse, controlling smaller cash payments as product is used rather than paying a single upfront import tariff for the entire container value
The deferral is especially impactful for companies impacted by Section 301 Tariffs on imports from China, and Section 232 Tariffs on Steel & Aluminum, as these products are subject to especially high carrying costs due to high tariff rates.
- Defer your import tariffs and fees
- Reduce inventory carrying costs
- Pay import tariffs in smaller amounts later, rather than full upfront cost at port of entry
Will My Company Benefit?
Indicators that your company should consider FTZ include:
- You import significant value of product, and/or expect imports to grow
- You re-export a substantial percentage of imports
- You hold significant value of imported inventory