Import duties can tie up cash long before inventory reaches your customers. A foreign trade zone can change when those duties become payable and, for certain goods that are exported or destroyed, whether U.S. import duties are paid at all. Approved weekly-entry procedures can also reduce eligible customs processing fees. [1] [2]

The opportunity is not limited to companies that build or operate their own facilities. Importers can use an existing FTZ operator, such as Komar Distribution Services, and incorporate FTZ procedures into their warehousing and distribution program. [3]

This guide explains the program from an importer's perspective: what happens to your goods, where the financial benefits come from, which requirements still apply, and what your team needs to prepare.

Regulatory information checked September 9, 2026. The examples are illustrative, not customer results or guarantees. Product-specific treatment should be confirmed with your customs broker or trade adviser.

What is a foreign trade zone?

A foreign-trade zone, or FTZ, is a designated location in the United States where eligible merchandise can use special customs procedures before entry into U.S. commerce. FTZ operations require both the appropriate Foreign-Trade Zones Board authority and activation by U.S. Customs and Border Protection, usually called CBP. [2] [4]

The goods are physically in the United States. The FTZ is treated as outside U.S. customs territory for specified customs purposes, not as outside U.S. law. This allows eligible inventory to be held under customs control without immediately making the consumption entry that normally brings import duties into play. [2]

For a brand or distributor, the simplest explanation is this: you can position eligible inventory in a U.S. warehouse before paying the import duty associated with releasing it into the U.S. market.

FTZ admission is not the same as a consumption entry

An admission records merchandise entering the FTZ under the required customs procedures. A consumption entry is the customs process used when foreign-status merchandise is released from the FTZ into U.S. commerce. The two events can occur weeks or months apart. [5] [6]

A consumer buying the product is not what triggers the customs entry. Goods can enter U.S. commerce when shipped to a retailer, another domestic warehouse or a fulfillment customer, even if they have not yet been sold to the final consumer.

Who operates an FTZ, and who uses it?

The grantee holds the grant of authority for the zone. An operator runs a site under the required arrangements and CBP oversight. A user is a business that uses the zone through an agreement with the operator. A site is an approved physical location; a subzone is a site or group of sites established for a specific use. [3]

You do not need to become a grantee or establish your own warehouse to participate. Using an existing operation means evaluating its fit, completing customer onboarding and following the agreed customs and inventory procedures.

Foreign trade zone, free trade zone and bonded warehouse

In the United States, foreign-trade zone identifies this specific federal program. Free trade zone is also used internationally, but a foreign country's free-zone rules do not establish how a U.S. FTZ operates. A customs bonded warehouse is a separate U.S. customs arrangement that can also defer duty. The two programs have different operating rules, which are compared later in this guide. [1] [23]

How does FTZ warehousing work from arrival to shipment?

An FTZ program adds customs controls to the warehouse flow. The physical activities may look familiar: receive inventory, store it, prepare orders and ship. What changes is the documentation and authorization connecting those activities.

1. Prepare the merchandise and admission data

Before the first shipment, the importer, customs broker and operator establish the product information, merchandise status, transfer arrangements and admission process. An FTZ admission commonly uses the electronic version of CBP Form 214, called the e214. Commercial and transportation records support the admission. [5] [33]

Do not assume a shipment can arrive as ordinary domestic freight and acquire the intended foreign-status treatment afterward. Routing, in-bond movement when needed, admission and receiving must be coordinated in advance.

2. Receive and account for the goods

The warehouse checks what arrived and records the inventory under the applicable FTZ controls. The records must connect admissions to inventory and its subsequent movement or disposition, including discrepancies. [29]

For example, an apparel importer might receive several sizes and colors under one commercial shipment. The operating design needs enough product and customs detail to preserve the correct treatment as those units are stored and allocated to orders.

3. Store inventory and perform authorized work

Eligible merchandise can remain in FTZ storage without a general FTZ-program time limit, although product restrictions, other laws and the commercial agreement still apply. Inspection, labeling, repacking and other handling must remain within the approved operating scope. Some activities require additional authorization. [24] [8]

4. Determine the goods' destination

Each route requires the appropriate records and authorization. A transfer between two facilities owned by the same company does not remove customs requirements. [6] [7] [8] [9]

5. Release, reconcile and retain the audit trail

The operator and authorized filer coordinate release controls and reconcile the goods actually shipped or otherwise disposed of. Warehouse shipping records, customs filings and FTZ inventory records need to agree. Annual reconciliation is also part of the regulatory framework. [30] [31]

Illustrative flow: overseas supplier to port; authorized movement to the FTZ; admission and receiving; storage and permitted handling; then domestic release, qualifying export, approved transfer or destruction. The applicable customs procedures accompany the physical movement rather than being added after the goods leave.

Four potential benefits of FTZ warehousing

There is no universal ranking of FTZ benefits. An importer with substantial duty exposure and long inventory holding periods may place the greatest value on working capital. Another may benefit primarily from export activity or frequent customs entries.

The following examples are independent illustrations, not one combined customer savings projection. Each has its own assumptions. A combined model must account for goods exported or destroyed, actual domestic withdrawals, existing duty-recovery programs and incremental costs.

1. Duty deferral: keep working capital available longer

Duty deferral postpones payment; it does not, by itself, cancel duties on goods entering U.S. commerce. The practical benefit is having that cash available while inventory remains under the FTZ arrangement. [1]

A company may use the additional liquidity to reduce borrowing, fund inventory purchases or preserve cash for other needs. The financial value depends on how much duty is deferred, the additional time before payment and the company's cost of capital.

Worked example: $20 million in annual imports

Average duties deferred = $20,000,000 x 20% x 75 / 365 = $821,918.

Annual financing benefit = $821,918 x 8% = $65,753, rounded to $65,800.

These are two different measures. Approximately $822,000 is the average duty-related working capital retained. Approximately $65,800 is its estimated annual financing value. The deferred balance is not annual profit, and the two figures should not be added together as savings.

This simplified example assumes steady inventory flow, eventual domestic withdrawals and 75 additional days before payment compared with immediate payment. A real assessment should compare actual payment schedules with and without FTZ use. Existing customs payment arrangements can change that comparison.

The 20% duty rate and 8% cost of capital are illustrative assumptions, not claims about the average U.S. importer. A seasonal business should also examine monthly cash balances and peak borrowing needs, not only a full-year average.

2. Qualifying re-exports: avoid paying U.S. duty in the first place

Eligible foreign-status merchandise exported from an FTZ without entering U.S. commerce generally avoids U.S. import duty. Unlike deferral on a domestic shipment, this can be permanent duty avoidance. [7]

It also changes the administrative process: there is no need to file a drawback claim to recover import duty that was never paid. Export documentation and customs controls still apply, but the pay-first-and-recover-later step for that duty is removed.

Worked example: Assume an importer brings in $20 million of goods annually and exports 12% under qualifying FTZ procedures. At an illustrative 20% duty rate on that merchandise, gross U.S. duty avoided is:

$20,000,000 x 12% x 20% = $480,000 annually.

This is gross duty avoidance, not automatically $480,000 of additional savings over the importer's current arrangement. An existing drawback program may already recover part of the duty. Compare the unrecovered amount, cash timing and administrative costs rather than counting the same benefit twice. [26]

Foreign destination duties remain a separate issue. Exports to Canada or Mexico also require review of the applicable USMCA duty-deferral rules, particularly when goods have been manufactured or changed in condition. Do not assume all cross-border exports receive identical treatment. [25]

3. Weekly entry: reduce eligible customs processing fees

The Merchandise Processing Fee, or MPF, is a customs user fee assessed on many formal entries. FTZ weekly entry can consolidate eligible withdrawals into a weekly consumption-entry arrangement rather than charging MPF across multiple separate entries. The statutory framework covers qualifying warehousing and distribution activity, not only manufacturing. [12]

MPF is assessed on an entry, not on each container, carton or customer order. The entry value, minimum and maximum fees, exemptions and filing arrangement determine the outcome.

Formal-entry MPF rates checked September 9, 2026

The FY2027 figures took effect October 1, 2026. The FY2026 figures are retained for historical comparison. [10] [11]

Worked example using FY2027 fees

Assume $20 million in annual domestic entered value, spread evenly across 208 nonexempt entries, compared with 52 eligible weekly entries.

The original entries in this example do not each reach the cap. Applying the maximum to all 208 would overstate the savings. With the same assumptions and FY2026 limits, gross annual MPF reduction would be approximately $35,402 instead.

This illustration assumes comparable annual domestic consumption value, steady throughput, no exemptions, no additional entries and one eligible filing arrangement. Entry-level rounding can cause small differences. Brokerage charges and FTZ operating costs are not included.

4. Approved destruction: avoid duty on goods that will not enter U.S. commerce

Damaged, defective, obsolete or otherwise unsaleable foreign-status goods may qualify for destruction under approved FTZ and CBP procedures before domestic entry. Where the requirements are met, the associated import duty can be avoided rather than paid on inventory that cannot be sold. [8]

For example, a quality inspection may identify an unsaleable lot before it is released to the domestic market. The operator and broker can review the proper disposition instead of treating it automatically as a normal domestic withdrawal.

Destruction requires authorization and documentation. Simply discarding inventory, writing it off or donating it is not equivalent to approved destruction. Recoverable scrap or residue may have its own customs treatment. Previously duty-paid goods also require a different analysis. [8] [15]

Avoiding duty does not recover the cost of the product itself or eliminate destruction and handling expenses. Those costs belong in the financial comparison.

What about the Harbor Maintenance Fee?

The Harbor Maintenance Fee, or HMF, is separate from MPF. It generally applies to covered ocean cargo at 0.125% of value, subject to exemptions and special rules. FTZ use does not automatically eliminate this fee or make it subject to MPF's weekly-entry cap. Cargo admitted to an FTZ has its own HMF reporting and payment provisions. [13]

How do privileged and nonprivileged foreign status affect duties?

Product classification describes what the merchandise is under the Harmonized Tariff Schedule of the United States (HTSUS). Customs status describes how that merchandise is treated within the FTZ. Both matter when determining duties.

FTZ merchandise receives a customs status that affects how it is treated. This is different from the warehouse's activation status or a stock item's commercial availability.

Privileged foreign status, or PF

Under the general FTZ rules, PF preserves classification based on the merchandise when the status is granted, with applicable duty treatment tied to the date a complete and proper PF-status application is filed. In ordinary terms, customs identifies the imported article before later processing can change its classification. [14] [16]

PF is not a general promise that every duty rate can never change. Special tariff measures may prescribe their own timing or treatment. An incorrect classification also does not become correct merely because it was used on admission.

Nonprivileged foreign status, or NPF

NPF generally bases classification on the merchandise's condition when it is entered into U.S. commerce. For authorized production, that distinction can matter because the finished article may differ from the imported components. NPF is not simply another name for duty-free inventory. [15] [16]

Can an importer choose either status?

The choice is not always available. Although general FTZ rules provide for both PF and NPF, certain tariff measures require covered merchandise to be admitted in PF status. CBP's July 2026 Section 301 guidance is one current example. Merchandise subject to antidumping or countervailing-duty actions also faces specific PF requirements. [19] [20]

Confirm the required status before admission. For goods affected by a mandatory PF rule, waiting until outbound shipment to decide the status is too late. Where the general rules permit a later PF application, that does not override a tariff measure requiring PF at admission.

Domestic and zone-restricted status

Domestic status can apply to U.S.-origin goods and certain previously entered goods on which duty has been paid or which entered duty-free. Keeping those records straight helps avoid treating already-cleared inventory as newly dutiable foreign merchandise. [17]

Zone-restricted status generally applies to merchandise admitted for particular exportation or destruction purposes. It carries restrictions and should not be treated as interchangeable with inventory freely available for domestic release. [18]

Does an FTZ remove Section 301, Section 232 or other additional tariffs?

Not automatically. Base duty, additional tariff measures, country of origin, customs value and merchandise status all contribute to the analysis. Antidumping and countervailing duties cannot be circumvented through FTZ procedures. [16] [20]

A tariff increase may make the cash-flow value of deferral more significant, but that does not create a blanket tariff exemption. Ask your broker to review the current measures for the specific products and dates. A general guide is not a reliable substitute for a live product-level tariff review.

How does FTZ weekly entry work?

Type 06 is the customs entry type used for FTZ consumption entries. Under eligible weekly-entry procedures, an estimated entry or release covers planned withdrawals during a seven-day period, with the entry summary reflecting the merchandise actually withdrawn. [12] [34]

The process is best understood as three connected activities.

Plan the withdrawals. The customer, operator and broker prepare the required estimate before the period begins. A labor forecast showing expected orders may help, but it is not necessarily a customs-ready estimate. Product identity, quantities, classifications, origin, values and status need to support the filings required for the goods.

Control the releases. The required customs authorization must be in place before covered merchandise leaves. Procedures must address merchandise or quantities outside the approved estimate before shipment, rather than simply adjusting the records afterward. [6]

Reconcile the actual activity. The operator's shipment records feed the authorized filer's entry-summary process. The estimate, actual withdrawals and remaining inventory must be traceable.

Weekly entry does not mean holding every order until the end of the week. Eligible releases can occur during the covered period. It also does not mean one universal entry for every importer or warehouse in a provider's national network. The permitted filing arrangement must match the actual operation. [12]

During onboarding, agree who prepares the forecast, who files, who approves releases, how exceptions are escalated and when reconciliations occur. Test a normal week and an exception before relying on the process at full volume.

Which products and activities can an FTZ warehouse handle?

FTZ eligibility starts with the merchandise, applicable law and the facility's approved scope. Prohibited merchandise cannot be admitted simply because the destination is an FTZ. Conditionally admissible products remain subject to the relevant agency's requirements. [21]

An apparel, footwear or consumer-goods importer should still review product classification, origin, labeling, safety requirements and any special restrictions. Food, cosmetics, regulated materials and other specialized goods may require additional capabilities or approvals. Eligibility under the federal program does not establish that a particular warehouse accepts the product.

Consumer-product compliance and the 2027 CPSC milestone

The U.S. Consumer Product Safety Commission (CPSC) implemented mandatory electronic filing of certificate information for most covered imports on July 8, 2026. Its announced applicability date for covered consumer products imported into FTZs and later entered for consumption or warehousing is January 8, 2027. [38]

For affected products, include certificate data and broker filing responsibilities in onboarding. This timing distinction is not permission to ignore the underlying testing, certification or safety requirements. Product eligibility and agency readiness should be reviewed alongside the duty calculation.

Warehousing and handling versus production

Storage and distribution programs may include inspection, sorting, labeling, repacking and other authorized handling. In FTZ terminology, some permitted work is called manipulation. That term describes an authorized activity; it does not mean changing an HTS code to obtain a preferred result. [8]

Production is a separate category. It can include substantial transformation or certain changes in classification or eligibility for consumption. Even work described commercially as assembly or kitting can require a production review. Do not judge the customs category solely by whether a task looks simple. [22]

What is inverted-tariff relief?

In some authorized production programs, imported components can be made into a finished article with a lower duty rate, and eligible merchandise may receive that finished-product treatment. The result depends on production authority, merchandise status and applicable tariff restrictions. [22]

This is not an automatic benefit of storing goods in an FTZ. It requires separate analysis and advance FTZ Board authorization. [39] Manufacturing and inverted-tariff programs are not part of Komar's standard FTZ warehousing offering.

FTZ vs. bonded warehouse: what is the difference?

Both FTZs and customs bonded warehouses can help manage imported inventory before duties are paid. The right comparison is between the actual services, rules and costs available to your business, not between building your own FTZ and renting someone else's bonded space.

These are program-level distinctions, not a statement that every facility provides every permitted service. [12] [23] [24] [35]

Compare duty exposure, shipment frequency, storage period, handling needs, service quality and total cost. Neither program is automatically best for all small importers or all large importers.

FTZ vs. duty drawback: avoidance or recovery?

Duty drawback is a refund of qualifying duties, taxes or fees after the required exportation or destruction conditions are satisfied. An eligible FTZ re-export can avoid paying U.S. import duty in the first place. [26]

The difference is not just the final duty amount. It includes cash timing, eligibility, supporting records, filing effort and any amounts that cannot be recovered.

A useful comparison is:

Import and claim drawback: pay eligible duties, complete a qualifying export or destruction, substantiate the claim and pursue recovery.

Qualifying FTZ re-export: keep eligible goods in foreign status, complete the export under the required procedures and avoid paying the associated U.S. import duty.

Neither approach removes recordkeeping. Also, not every duty is drawback-eligible, and special trade-remedy rules can change the comparison. [36]

Businesses may use FTZ and drawback for different inventory flows. Goods already entered and duty-paid do not acquire a retroactive duty refund simply because they are moved into an FTZ. Review existing inventory separately from future admissions. [17]

FTZ warehousing for ecommerce, retail and DTC brands

An FTZ can be part of a distribution model serving wholesale customers, retail programs and direct-to-consumer orders. Customs treatment depends on the merchandise and its release, not simply whether the sales order came from a retailer or an online store.

For a mixed-channel business, the operating questions include when goods are allocated, how the system distinguishes domestic and export orders, which items are already duty-paid, and how shipping authorization reaches the warehouse. Those decisions should be built into the workflow rather than left to the packing station.

Does an FTZ restore the $800 de minimis exemption?

No. As of September 9, 2026, the former commercial $800 duty-free treatment is suspended. CBP issued separate non-postal and postal rules in June 2026; the underlying statutory termination is scheduled for July 1, 2027. Businesses should not treat that future date as a reason to continue modeling the former exemption today. [27] [28]

An FTZ is not a way to recreate that exemption for each domestic parcel. Importing eligible inventory in bulk, holding it in an FTZ and making authorized domestic withdrawals is a different model. Applicable duties remain relevant when goods enter U.S. commerce.

The model may also change delivery speed, parcel spending and returns handling. Evaluate those logistics effects separately from customs savings. FTZ status does not automatically create a discounted customs value or permit an importer to select whichever invoice value produces the lowest duty. [16]

Is ecommerce fulfillment the same as retail trade inside an FTZ?

Not necessarily. Retail trade in activated FTZ areas is restricted, with specific exceptions. A warehouse serving online or retail customers must have a compliant sales, entry and release arrangement; it should not be treated as a duty-free storefront. Have the operator and broker confirm the proposed workflow rather than assuming that every ecommerce model is allowed. [32]

Inventory controls, system connections and returns

FTZ controls need to work with the distribution operation, not sit alongside it as a disconnected spreadsheet. Regulations require an inventory-control and recordkeeping system capable of accounting for merchandise and producing the required audit trail. A conventional warehouse management system is not automatically sufficient by itself. [29]

What information needs to stay connected?

At a practical level, the operating design should connect the product master, admission records, customs status, warehouse quantities, authorized handling, outbound movement and customs disposition. The records may involve the customer's enterprise resource planning (ERP) or order system, the warehouse management system (WMS), FTZ inventory software and the broker's filing system.

The important question is not whether every system has a direct connection to every other system. It is whether the correct data reaches the responsible party on time and whether errors prevent unauthorized releases.

For example, the same commercial SKU can arrive from different origins or under different admissions. The operating design must preserve the distinctions needed for customs treatment. A stock count that is correct only at the commercial SKU level may not resolve every FTZ accounting question.

Receiving discrepancies and inventory adjustments

Shortages, overages, damage and product-master errors need an agreed escalation process. Warehouse staff should not solve a customs discrepancy by making an unexplained inventory adjustment. Operator responsibilities include supervision and accountability for zone merchandise. [31]

Test how the workflow handles a missing carton, a new item not in the weekly estimate, an order cancellation and a customs hold. These are practical implementation tests, not reasons for the customer to build its own compliance system.

Returns require their own customs logic

A domestic customer return may already have entered U.S. commerce and had its duties paid. Receiving it back into the warehouse does not automatically reverse that entry or create a new duty-deferral benefit.

Eligible duty-paid goods can be accounted for under domestic-status rules. Foreign returns, repairs, goods originally exported and mixed-status inventory require separate review. Establish the return flow before launch so the warehouse does not accidentally treat all returned units as new foreign-status inventory. [17]

Transfers and exports are not ordinary domestic shipments

Moving foreign-status merchandise to another FTZ or export gateway may require bonded transportation and the relevant customs documents. An internal transfer order is not a substitute for those procedures. Confirm the destination, carrier requirements, admission or export records and responsibility for closing the movement. [7] [9]

When does FTZ warehousing make sense, and how do you calculate savings?

Start with the business's actual flows. An FTZ assessment is especially useful when meaningful duty exposure overlaps with inventory holding time, frequent entries, qualifying exports or anticipated destruction of unsaleable inventory.

There is no universal container count that proves participation will be profitable. A smaller importer may place high value on liquidity. A larger importer may have several benefits, but still needs to account for its operating costs.

Low duties, fast inventory turnover or infrequent entries can reduce some benefits without automatically eliminating all of them. Duty-free merchandise can also require a separate MPF review; zero duty should not be assumed to mean zero fees.

Start with a comparable baseline

The question is not, "How much duty passes through this business?" It is, "What changes financially and operationally compared with the way this business would otherwise import and distribute the same goods?"

Use actual import and entry records where available. Separate domestically released inventory from qualifying exports and destruction. Account for existing drawback, bonded arrangements, exemptions and customs payment timing.

Estimated recurring net benefit = financing value + incremental duty avoidance + fee savings + net administrative savings - incremental recurring costs.

Show one-time implementation costs separately. Where recurring net benefit is positive, a simple payback estimate divides those one-time costs by the annual net benefit; it is not a substitute for a fuller cash-flow model.

Avoid three common calculation errors

Do not count a balance as income. Average duties deferred are a cash-flow balance, not an annual profit figure.

Do not stack incompatible assumptions. A calculation assuming all inventory enters the domestic market cannot be added unchanged to an export-avoidance example using some of that same inventory. Recalculate the actual mix and timing.

Do not subtract the same cost twice. A fee already embedded in the operator's quote should not be deducted again under a separate systems or administration line unless it is genuinely additional.

Use a base case and a conservative case. Vary duty exposure, inventory holding time, export percentage and fees to see which assumptions matter most. The assessment should make the decision clearer, not depend on the most favorable possible combination.

What does an FTZ warehousing program cost?

The customer's cost is the price of the proposed operating arrangement, not automatically the full expense of establishing a new zone.

Request a clear comparison separating ordinary warehouse services from incremental FTZ work. Depending on the proposal, relevant items may include initial data preparation, integration, inventory conversion, admission processing, weekly-entry administration, brokerage, recordkeeping, special handling, transfers, exports or destruction.

Also identify the customer's internal work and any importer-specific bond or agency requirements confirmed by the broker. An operator's FTZ bond should not be assumed to replace every bond obligation elsewhere in the transaction.

Ask which charges are fixed, which vary with admissions or shipments, and which apply only to exceptions. There is no useful universal "FTZ surcharge" without the scope that accompanies it. Komar's assessment should compare the actual quoted services with the relevant benefits for your program.

How do you start using an existing FTZ warehouse?

Using an established operator is a customer implementation project, not normally an application to create your own zone. The approved site and CBP activation must be appropriate for the proposed operation. Production authority is a separate matter when the activity requires it. [4] [22]

What the operator, importer and broker each handle

Assign the details in the operating agreement and onboarding plan. Using a broker or warehouse does not transfer away the importer's reasonable-care obligations. [12] [31]

Information to prepare

Bring what is already available. An initial assessment does not require a perfectly organized data room.

The broker and operator will identify additional fields or documents required for the actual filings. A sales forecast alone is not necessarily enough for an admission or weekly estimate.

A practical onboarding sequence

Assess fit and costs. Review the merchandise, distribution needs, potential benefits and proposed facility.

Confirm scope and responsibilities. Agree the service arrangement, participating parties, authorizations, data owners and exceptions.

Prepare data and connections. Validate the product master and establish the required exchanges among customer, warehouse, FTZ records and broker.

Test the complete flow. Include receiving, domestic withdrawals, weekly reconciliation and any applicable exports, transfers, returns or destruction.

Launch with controls in place. Begin with an agreed ramp, named contacts and a process for resolving discrepancies promptly.

Timing depends on merchandise complexity, data quality, broker readiness, integrations, required approvals and testing. A standard warehousing launch and an advanced production project should not be given the same assumed timeline.

How should you evaluate an FTZ warehouse provider?

Evaluate customs readiness and fulfillment capability together. A program can be compliant yet poorly matched to your delivery requirements, or operationally attractive but not ready for your merchandise.

Ask the provider to confirm the specific activated site and scope, not simply whether the company has an FTZ designation somewhere in its network. Then review how inventory records connect to physical operations, how customs holds stop shipment and how the operator works with your broker.

On the distribution side, assess receiving, inventory accuracy, retail requirements, ecommerce order profiles, returns and transportation. Ask for the measurement period and definition behind performance claims rather than comparing unexplained percentages.

Finally, review the commercial terms, exit or transfer process, and who owns each onboarding and ongoing task. The strongest assessment shows both the potential value and the work needed to achieve it.

Using Komar's FTZ warehousing and distribution services

Komar Distribution Services combines warehousing and distribution with an FTZ operating framework for eligible customer programs. Our approach is to help you understand the opportunity, evaluate the relevant costs and requirements, and coordinate implementation with your customs broker.

The network discussion starts with where inventory needs to be received and where customers need it delivered, not customs benefits alone.

Explore the Perris, California facility, McAlester, Oklahoma operations, and Savannah-region operations for location context.

FTZ service depends on the specific site's activated area, approved scope and suitability for your merchandise. Before inventory is routed, Komar will confirm the location and operating arrangement for your program. A regional facility listing is not a statement that every building, square foot or activity is activated for FTZ use.

Komar's standard offering focuses on FTZ warehousing and distribution. Specialized manufacturing or inverted-tariff production programs require separate evaluation and are not included in that standard scope.

Frequently asked questions about FTZ warehousing

Do I need to establish my own foreign trade zone?

No. A business can use an existing FTZ operator through a commercial agreement. Your onboarding prepares the merchandise, broker, data and operating procedures. It is different from obtaining designation and activation for a new facility. [3] [4]

Is an FTZ only useful for very large importers?

No single company-size or container-count threshold determines the value. Duty exposure, holding time, entry frequency, qualifying exports and actual costs matter together. A smaller importer may place substantial value on cash flow even when MPF savings are limited.

When are duties paid on inventory in an FTZ?

For eligible foreign-status goods, duties generally become payable through the consumption-entry process when the goods enter U.S. commerce. That is not necessarily the date of a retail sale. The precise filing and payment schedule depends on the approved arrangement and applicable rules. [6]

Can goods stay in an FTZ indefinitely?

There is no general FTZ storage time limit. Other laws, product restrictions, inventory controls and the warehouse agreement still apply. Indefinite permission to store is not a promise of unlimited capacity or cost-free storage. [24]

Can already duty-paid inventory be stored in an FTZ?

Eligible goods can be handled under domestic-status rules. Moving them into the FTZ does not automatically refund previously paid duties. Maintain the documentation needed to distinguish them from foreign-status inventory. [17]

Does privileged foreign status prevent re-exporting?

PF is a customs-status category, not a requirement that merchandise must be sold domestically. Eligible exports remain possible under the applicable export procedures. Product restrictions and special trade-agreement rules still need review. [14] [7]

Can we use our existing customs broker?

Broker participation should be reviewed during onboarding. The key questions are whether the broker supports the required FTZ filings, can exchange the necessary data and will follow the agreed operating schedule. The arrangement should be confirmed rather than assumed.

Will weekly entry delay every customer order until Friday?

No. The process can support authorized withdrawals during the covered seven-day period. Goods still need the required release authorization, and withdrawals outside the estimate need to be addressed before shipment. [12] [6]

Are duties avoided on every shipment to Canada or Mexico?

Not automatically. USMCA has specific rules for duty-deferral programs, including distinctions relevant to goods exported in the same condition versus goods processed or manufactured. Have the broker evaluate the actual flow and destination requirements. [25] [37]

Can we donate unsaleable inventory instead of paying duty?

Donation is not the same as authorized destruction or qualifying export. A domestic donation can still require the applicable consumption entry and duty treatment unless a separate provision applies. Confirm the disposition before releasing the goods. [6] [8]

Is FTZ warehousing the same as tax-free warehousing?

No. FTZ procedures address particular customs issues; they do not provide a general exemption from all taxes, fees or product requirements. Other potential tax treatments require their own review, and HMF may still apply to covered ocean imports. [13] [20]

What should we send Komar for an initial conversation?

Start with available import value, duties and entry fees, inventory holding time, product information, export activity and distribution requirements. Komar can help identify missing inputs and coordinate next steps with your customs broker.

This guide provides general educational information, not legal, tax or customs advice for a specific transaction. Eligibility, duty treatment, approvals, fees and implementation requirements depend on the merchandise and operating arrangement. Published examples are independent illustrations, not quotations or guaranteed results.

Official sources and further reading

The references below support the customs explanations and effective dates in this guide. Current product-level guidance takes priority over a general example.

1. International Trade Administration: About FTZs

2. CBP: About Foreign-Trade Zones

3. 15 CFR 400.2: FTZ definitions and roles

4. 19 CFR 146.6: Procedure for activation

5. 19 CFR 146.32: Application and permit for admission

6. 19 CFR 146.63: Entry for consumption

7. 19 CFR 146.67: Transfer of merchandise for exportation

8. 19 CFR 146.52: Authorized manipulation, manufacture, exhibition or destruction

9. 19 CFR 146.66: Transfers between zones

10. CBP CSMS 65741993: User fees effective October 1, 2025

11. CBP: FY2027 customs user fees, effective October 1, 2026

12. 19 U.S.C. 1484: Entry requirements and the FTZ weekly-entry provision

13. 19 CFR 24.24: Harbor Maintenance Fee

14. 19 CFR 146.41: Privileged foreign status

15. 19 CFR 146.42: Nonprivileged foreign status

16. 19 CFR 146.65: Classification, valuation and liquidation

17. 19 CFR 146.43: Domestic status

18. 19 CFR 146.44: Zone-restricted status

19. CBP CSMS 69326983: July 2026 Section 301 guidance and PF admission requirement

20. 15 CFR 400.13: General restrictions and AD/CVD treatment

21. 19 CFR 146.31: Admissibility of merchandise

22. International Trade Administration: FTZ Production Center

23. 19 CFR 144.5: Period of bonded warehousing

24. CBP: FTZ locations, use and storage overview

25. 19 CFR 182.53: USMCA duty-deferral program rules

26. CBP: Drawback in ACE

27. CBP: June 24, 2026 non-postal de minimis rule

28. CBP: June 24, 2026 international-mail de minimis rule

29. 19 CFR 146.21: Inventory control and recordkeeping

30. 19 CFR 146.25: Annual reconciliation

31. 19 CFR 146.4: Operator responsibility and supervision

32. 15 CFR 400.47: Retail trade

33. CBP: ACE FTZ e214 business process guidance

34. CBP: ACE transaction details and entry types

35. 19 CFR Part 19: Customs bonded warehouses and applicable classes

36. CBP: Drawback and trade-remedy FAQs

37. 19 CFR 182.45: USMCA full-drawback categories

38. CPSC: July 8, 2026 eFiling implementation and FTZ applicability date

39. 15 CFR 400.14: Advance production authorization and scope

Related guides and location insights

• what the end of de minimis means for DTC brands
• duty deferral, re-exports, and weekly entry in Georgia
• third party logistics in Georgia
• Ellabell climate-controlled facility
• The FTZ Advantage: Flexibility When It Matters Most

Additional FTZ resources

• U.S. Customs and Border Protection - What is a Foreign-Trade Zone?
• Official FTZ Information System - zone, site, and subzone records
• CBP - Foreign-Trade Zones Manual
• CBP - Merchandise Processing Fee rates
• CBP - Section 301 Trade Remedies FAQ
• International Trade Administration - FTZ case processing times