Foreign-Trade Zone vs. Bonded Warehouse


Foreign-Trade Zone

Bonded Warehouse

Outside Commerce of the US

Warehouse Entry into the Commerce

Advanced Inventory Methods

Limited Inventory Methods

Combine Domestic and Foreign Merchandise

May not combine Domestic and Foreign

Reduced Customs Liabilities for Imports

Increased Customs Involvement/ Increased Customs Liabilities

Direct Delivery; receive merchandise 24/7 without Customs prior clearance

No Direct Delivery

Estimated Weekly 7512

No Weekly 7512

Estimated Weekly Entry (One MPF per Week)

No Weekly Entry (Merchandise Processing Fee charged per Entry)

No Customs Entry - Admitted on CBP 214

Entry made on CBP 7501

Choose PF or NPF status

Duty paid at rate in effect at withdrawal

Manufacturing may occur in zone with FTZB approval

Manufacturing in Class 6 for export only

Broad range of scrap/waste savings

Limited scrap/waste savings

Merchandise can remain in FTZ indefinitely

Can only remain for 5 years from importation


FTZ Warehouses

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