Foreign Trade Zones Warehousing

Foreign Trade Zones (FTZs) allows companies to position foreign inventory in the United States without paying duties and taxes. WTDC provides Foreign Trade Zone warehousing and FTZ Consulting. Some of the advantages of Foreign Trade Zones include:

  • Deferment of duties

  • Inventory management, order fulfillment, and pick and pack by SKU

  • The ability to position products not approved for use in the U.S.

  • Electronic filing of U.S. Customs documentation

  • A simplified manipulation process

  • Key commodities: Duty-Free and Travel Retail, electronics, and medical supplies

  • Weekly or monthly Merchandise Processing Fee (MPF) summary entries

  • Quarterly Harbor Maintenance Fee (HMF) reporting

WTDC was the first FTZ activated within PortMiami’s FTZ 281 on December 12, 2012

DUTY DEFERMENT

Inventory received into WTDC’s Foreign Trade Zone is duty-free – no import fees are due to CBP. Inventory can then be exported or clear customs for entry into the United States. Companies can defer duties indefinitely in a Foreign Trade Zone.

 

POSITION PRODUCTS NOT APPROVED FOR USE IN U.S.

Foreign Trade Zones allow companies to position products for international distribution that do not meet United States regulatory standards of EPA, FCC, and FDA. Examples include non-EPA approved generators, non-FCC approved cellular phones, and non-FDA approved PPE medical supplies.

 

FTZ DOCUMENTS

All cargo requires CBP documentation to enter and exit WTDC’s Foreign Trade Zone. WTDC electronically files a Customs Form 214  for cargo to enter the zone. A Customs Form 7512 will also be filed if cargo is arriving from a port besides PortMiami. If any manipulation of cargo in the FTZ is required, such as relabeling or kitting, a Customs Form 216 will be filed. Each outbound shipment from the FTZ requires a Customs Form 7512.

 

 

MANIPULATION

Foreign Trade Zones have a simplified manipulation process. If a repeated manipulation will be performed in the zone, blanket manipulation may be filed. Merchandise can be assembled, sorted, cleaned, destroyed, exhibited, labeled, repaired, and repacked.

INVENTORY MANAGEMENT

Spirits, perfume, and cosmetics companies in the Duty-Free and Travel Retail industry position bonded inventory (no duties paid) in WTDC’s FTZ for distribution onto cruise ships, duty-free stores, Latin America, and the Caribbean.

 

 

Quarterly Harbor Maintenance Fee (HMF)

In a Foreign Trade Zone, you can consolidate the HMF payments quarterly. This is a cash flow strategy and helps importers reduce costs.