Foreign Trade Zones: Unlock Global Trade Advantages with Komar Distribution Services

In today’s increasingly complex global trade environment, businesses face mounting challenges from rising import duties, unpredictable tariffs, and competitive pressures to optimize their supply chains. Foreign Trade Zones (FTZs), also known as Free Trade Zones, offer a powerful solution to these challenges, providing significant financial and operational advantages that can transform your international trade operations.

At Komar Distribution Services, we’ve positioned our entire network as fully activated Foreign Trade Zones, allowing your business to immediately leverage these benefits without the lengthy application and setup process typically associated with FTZ establishment. Our strategic approach to FTZ management empowers companies to maximize cash flow, minimize import costs, and streamline customs processes while maintaining complete compliance with all regulatory requirements.

This comprehensive guide explores everything you need to know about Foreign Trade Zones – from fundamental concepts and core benefits to implementation strategies and real-world success stories. Whether you’re new to FTZs or looking to optimize your existing international trade operations, Komar Distribution Services provides the expertise, infrastructure, and support to help your business thrive in the global marketplace.

Discover how our end-to-end FTZ solutions can transform your supply chain operations, reduce costs, and accelerate your business growth in an increasingly competitive global economy.

Map of the United States showing hundreds of Foreign Trade Zones (FTZs) clustered near major ports and logistics hubs.
Foreign Trade Zone locations across the United States (Source: ArcGIS Online FTZ Locations Map, Foreign-Trade Zones Board).

What Is a Foreign Trade Zone?

A Foreign Trade Zone (FTZ) is a secure, designated location within the United States that is legally considered outside of U.S. Customs territory for duty and tax purposes. These specialized zones, established under the Foreign-Trade Zones Act of 1934, create powerful opportunities for businesses engaged in international commerce to optimize their supply chains and reduce costs associated with importing and exporting goods.

The Legal Framework of Foreign Trade Zones

Foreign Trade Zones operate under the authority of the Foreign-Trade Zones Board, which is chaired by the Secretary of Commerce. The program is administered through two primary sets of regulations:

  1. FTZ Regulations (15 CFR Part 400) – Governing the establishment and operation of zones
  2. CBP Regulations (19 CFR Part 146) – Overseeing customs procedures within zones

While FTZs are considered outside U.S. customs territory for duty purposes, they remain within the jurisdiction of all other federal, state, and local laws and regulations. This unique status creates a controlled environment where businesses can conduct international trade activities with significant financial advantages.

How Foreign Trade Zones Function

Within an FTZ, companies can import, store, manipulate, manufacture, and re-export goods without immediate payment of customs duties or tariffs. These costs are deferred until merchandise leaves the zone and enters U.S. commerce for domestic consumption. At that point, the importer generally has the choice of paying duties at the rate of either the original foreign materials or the finished product, whichever is more advantageous.

This duty deferral mechanism creates substantial cash flow benefits for importers managing international supply chains. Rather than tying up capital in duty payments upon arrival, businesses can strategically time their duty payments to align with their sales cycles and market entry strategies.

Types of Foreign Trade Zones

The FTZ program encompasses two primary types of zones:

General-Purpose Zones

These zones typically operate as public utilities, offering leasable storage and distribution space to multiple users. General-purpose zones are often located at ports of entry, industrial parks, or transportation hubs, providing shared infrastructure and services to businesses of various sizes

Special-Purpose Subzones

These are typically private facilities authorized by the FTZ Board for operations that cannot be accommodated within an existing general-purpose zone. Subzones are usually manufacturing facilities or distribution centers operated by a single company for specific activities.

At Komar Distribution Services, our facilities are fully designated and activated FTZs, allowing your business to immediately leverage these benefits without establishing your own zone. This turnkey approach eliminates the lengthy application and approval process typically associated with FTZ establishment, enabling you to start realizing cost savings within 30-60 days rather than waiting 9-12 months for a new designation.

Core FTZ Benefits

Foreign Trade Zones offer numerous strategic advantages for businesses engaged in international trade. Understanding these benefits can help your company make informed decisions about incorporating FTZ operations into your supply chain strategy. At Komar Distribution Services, we help businesses leverage these advantages through our fully activated FTZ network.

Duty Deferral: Enhancing Cash Flow

One of the most significant benefits of operating within a Foreign Trade Zone is the ability to defer payment of customs duties and federal excise taxes. When merchandise enters an FTZ, no duties are paid until the goods leave the zone and enter U.S. commerce for domestic consumption. This deferral creates substantial cash flow advantages, allowing businesses to:

  • Retain capital that would otherwise be tied up in duty payments
  • Align duty payments with sales cycles and revenue generation
  • Improve financial planning and forecasting
  • Enhance overall liquidity and working capital management

For businesses with high-volume imports or those dealing with products subject to significant duty rates, this deferral alone can translate into hundreds of thousands or even millions of dollars in improved cash flow annually, as demonstrated in our apparel brand case study.

Merchandise Processing Fee (MPF) Savings

The Merchandise Processing Fee (MPF) is an ad valorem fee charged by U.S. Customs and Border Protection on all formal entries, with a maximum charge of $595 per entry. For businesses making multiple entries each week, these fees can quickly accumulate to substantial amounts. 

FTZs allow for weekly entry filing, consolidating all entries for the week into a single customs entry. This consolidation can dramatically reduce MPF costs:

  • Standard approach: Each shipment requires separate entry filing with MPF up to $595 per entry
  • FTZ approach: All shipments for the entire week consolidated into a single entry with one MPF charge

For companies processing multiple shipments weekly, this consolidation can reduce annual MPF expenses by 80% or more, creating immediate and predictable cost savings.

Duty Elimination on Exports

When merchandise is brought into an FTZ and subsequently exported without entering

U.S. commerce, no customs duties or federal excise taxes are ever paid. This complete duty elimination provides significant advantages for:

  • Distribution operations serving international markets
  • Manufacturing businesses with global supply chains
  • Companies using the S. as a distribution hub for North and South American markets
  • Businesses re-exporting products after value-added processing or assembly

This benefit is particularly valuable for companies that import components or materials, perform value-added activities within the FTZ, and then export the finished products to international markets.

Duty Reduction Through Inverted Tariff Relief

For manufacturing operations, FTZs offer the potential for “inverted tariff relief.” This occurs when the duty rate for the finished product is lower than the duty rates for its imported components. In an FTZ, manufacturers can choose to pay the lower finished product duty rate rather than the higher component rates, creating substantial savings.

For example, if imported components have duty rates of 6-8%, but the finished product has a duty rate of only 2.5%, the manufacturer can realize a 3.5-5.5% duty savings on the component value. For manufacturing operations with high import volumes, these savings can be transformative to profitability.

Indefinite Storage Without Time Constraints

Unlike bonded warehouses, which limit storage to five years, FTZs allow merchandise to be stored indefinitely without time restrictions. This flexibility enables businesses to:

  • Maintain optimal inventory levels without artificial time pressures
  • Respond strategically to market conditions and demand fluctuations
  • Implement long-term inventory management strategies
  • Store seasonal merchandise between selling seasons

This unlimited storage capability provides businesses with maximum flexibility in managing their inventory and supply chain operations.

Enhanced Inventory Management and Control

Operating within an FTZ requires implementing robust inventory control systems that track all merchandise movements. While this might initially seem like an additional requirement, these systems typically deliver significant operational benefits:

  • Improved inventory accuracy and visibility
  • Enhanced tracking of goods throughout the supply chain
  • Better forecasting and planning capabilities
  • Reduced inventory shrinkage and loss
  • Streamlined compliance with customs regulations

At Komar Distribution Services, our advanced inventory management systems provide real-time visibility into your FTZ inventory, ensuring both regulatory compliance and operational excellence.

Streamlined Customs Procedures

FTZs offer several procedural advantages that can simplify and expedite customs processes:

  • Direct delivery procedures that allow merchandise to move directly from port to FTZ
  • Simplified entry procedures for goods entering S. commerce
  • Consolidated weekly entry filings instead of per-shipment entries
  • Streamlined in-bond transfer processes between zones

These procedural benefits reduce administrative burdens, minimize delays, and create more predictable supply chain operations.

Tariff Mitigation Strategies

In today’s volatile trade environment, FTZs provide strategic options for mitigating the impact of changing tariff policies:

  • Deferring duties until market conditions improve
  • Avoiding duties entirely on re-exported merchandise
  • Applying for manufacturing authority to reduce duty exposure
  • Strategically timing entry of goods into S. commerce

These strategies can be particularly valuable during trade disputes or when facing unexpected tariff increases, providing businesses with more options to manage their international trade operations effectively

Why Komar Distribution Services?

When it comes to leveraging the benefits of Foreign Trade Zones, choosing the right partner is crucial for maximizing your advantages while minimizing complexity. Komar Distribution Services stands apart as a premier FTZ operator with a comprehensive approach to international trade facilitation.

Fully Activated FTZ Network

Unlike many logistics providers who may offer limited FTZ capabilities or require lengthy setup processes, Komar Distribution Services maintains a network of fully designated and activated Foreign Trade Zones across strategic U.S. locations. This turnkey infrastructure means:

  • Immediate access to FTZ benefits without the 9-12 month application process
  • Ability to begin realizing cost savings within 30-60 days
  • No capital investment required in FTZ infrastructure or activation
  • Seamless integration of FTZ advantages into your existing supply chain

Our established FTZ network eliminates the traditional barriers to entry, making these powerful trade advantages accessible to businesses of all sizes without the typical startup costs or administrative burdens.

Dedicated FTZ Expertise

Foreign Trade Zone operations require specialized knowledge of customs regulations, inventory control requirements, and compliance procedures. Komar’s team brings over a decade of FTZ management experience, providing:

  • Expert guidance on FTZ strategy and implementation
  • Proactive compliance management and audit preparation
  • Ongoing optimization of duty savings opportunities
  • Strategic counsel on tariff mitigation approaches
  • Continuous monitoring of regulatory changes and updates

This expertise ensures your operations remain fully compliant while maximizing the financial benefits available through the FTZ program.

Advanced Technology Integration

Effective FTZ management demands sophisticated technology solutions that can track inventory movements, calculate duty implications, and maintain detailed audit trails. Komar Distribution Services employs proprietary FTZ software platforms that deliver:

  • Real-time visibility into FTZ inventory status
  • Automated weekly entry preparation and filing
  • Precise duty calculation and forecasting
  • Comprehensive reporting for compliance and business intelligence
  • Integration capabilities with your existing ERP and WMS systems

Our technology investments eliminate the need for you to develop or maintain specialized FTZ systems, reducing your IT burden while enhancing operational capabilities.

Comprehensive Supply Chain Solutions

Beyond our FTZ capabilities, Komar Distribution Services offers end-to-end supply chain solutions that complement and enhance the value of our Foreign Trade Zone operations:

  • International transportation management
  • Customs brokerage services
  • Warehousing and distribution
  • Value-added services (kitting, assembly, labeling)
  • E-commerce fulfillment
  • Last-mile delivery coordination

This integrated approach allows us to optimize your entire supply chain, not just the FTZ component, creating synergies and efficiencies throughout your operations.

Strategic Location Advantages

Our FTZ facilities are strategically positioned near major ports of entry and transportation hubs, providing:

  • Minimized transit times from port to FTZ
  • Reduced transportation costs
  • Faster processing of inbound shipments
  • Optimized outbound distribution capabilities
  • Enhanced service levels to your customers

These location advantages compound the financial benefits of FTZ operations by reducing overall logistics costs and improving speed-to-market.

Client-Centric Approach

At Komar Distribution Services, we recognize that each client has unique supply chain requirements and FTZ objectives. Our client-centric approach includes:

  • Customized FTZ implementation strategies
  • Tailored reporting and analytics
  • Dedicated account management
  • Regular performance reviews and optimization
  • Collaborative planning and forecasting

This personalized service ensures that your specific needs drive our approach, rather than forcing your business into a standardized model.

Proven Track Record of Success

Our experience in managing FTZ operations has generated significant, measurable results for clients across diverse industries:

  • Millions in annual duty deferrals and savings
  • 80%+ reductions in merchandise processing fees
  • Substantial improvements in cash flow
  • Enhanced inventory management accuracy
  • Streamlined customs clearance processes
  • Reduced overall landed costs

These proven results demonstrate our ability to translate FTZ theory into practical business advantages that impact your bottom line.

KDS FTZ Support & Administration

Implementing and managing a Foreign Trade Zone operation requires specialized expertise, robust systems, and meticulous attention to regulatory compliance. At Komar Distribution Services, we’ve developed a comprehensive FTZ support and administration framework that eliminates these complexities for our clients, allowing you to focus on your core business while we handle the intricacies of FTZ management.

Accelerated FTZ Implementation

Unlike many logistics providers who may offer limited FTZ capabilities or require lengthy setup processes, Komar Distribution Services maintains a network of fully designated and activated Foreign Trade Zones across strategic U.S. locations. This turnkey infrastructure means:

  • Immediate access to FTZ benefits without the 9-12 month application process
  • Ability to begin realizing cost savings within 30-60 days
  • No capital investment required in FTZ infrastructure or activation
  • Seamless integration of FTZ advantages into your existing supply chain

Our established FTZ network eliminates the traditional barriers to entry, making these powerful trade advantages accessible to businesses of all sizes without the typical startup costs or administrative burdens.

Comprehensive Compliance Management

FTZ operations must adhere to strict regulatory requirements established by U.S. Customs and Border Protection (CBP). Our dedicated FTZ compliance team manages all aspects of regulatory adherence, including:

CBP Activation and Security Audits

We coordinate all regulatory paperwork and site reviews required for FTZ activation and ongoing compliance, including:

  • Preparation and submission of all required CBP documentation
  • Coordination of physical security inspections and audits
  • Implementation of required security measures and protocols
  • Ongoing maintenance of compliance documentation
  • Regular self-assessments to ensure continuous adherence to regulations

This proactive approach to compliance management minimizes regulatory risks and ensures uninterrupted FTZ operations.

Tailored FTZ Software Solutions

Our proprietary FTZ management platforms automate critical processes and maintain the detailed records required by CBP:

  • Automated admissions processing for incoming shipments
  • Weekly entry preparation and filing
  • Precise duty calculations based on HTS classifications
  • Detailed audit trails for all inventory movements
  • Comprehensive reporting capabilities for both compliance and business intelligence

These sophisticated systems eliminate manual processes, reduce errors, and provide real-time visibility into your FTZ operations.

Inventory Control and Recordkeeping

Maintaining accurate inventory records is a fundamental requirement for FTZ operations. Our advanced systems employ RFID technology and barcode scanning to ensure SKU-level traceability that meets §146 regulations:

  • Real-time tracking of all merchandise movements
  • Perpetual inventory management with cycle counting
  • Automated reconciliation processes
  • Detailed lot and serial number tracking when required
  • Complete chain of custody documentation

This precision in inventory management not only ensures compliance but also enhances your overall supply chain visibility and control.

Customs Liaison Support

Effective communication with CBP is essential for smooth FTZ operations. Komar handles all routine communication and filings with U.S. Customs and Border Protection:

  • Weekly entry filings and processing
  • Coordination of CBP examinations when required
  • Resolution of any discrepancies or compliance issues
  • Management of in-bond transfers between facilities
  • Facilitation of CBP audits and inspections

Our established relationships with CBP personnel and deep understanding of customs procedures ensure efficient interaction with regulatory authorities.

On-Demand Analysis and Reporting

Beyond basic compliance, we provide sophisticated analytical tools to help optimize your FTZ strategy:

  • Landed-cost modeling to identify optimal sourcing strategies
  • MPF-savings calculations to quantify weekly entry benefits
  • Duty deferral impact analysis on cash flow
  • SKU-level profitability assessment incorporating duty impacts
  • Scenario planning for tariff changes and trade policy shifts

These analytical capabilities transform FTZ compliance from a cost center to a strategic advantage for your business.

Client Testimonial

“With Komar managing compliance, our finance team never worries about CBP audits — we just see the duty savings hit the P&L.” — Director of Global Logistics, Consumer Electronics Client

Continuous Improvement and Optimization

Our FTZ support doesn’t end with basic compliance management. We continuously seek opportunities to enhance your FTZ operations through:

  • Regular review of HTS classifications for duty optimization
  • Identification of additional products suitable for FTZ handling
  • Monitoring of trade policy changes that may impact your operations
  • Implementation of process improvements to increase efficiency
  • Technology enhancements to improve visibility and control

This commitment to continuous improvement ensures that your FTZ operations remain optimized as your business evolves and trade policies change.

By entrusting your FTZ administration to Komar Distribution Services, you gain access to specialized expertise and systems without the overhead of developing these capabilities internally. Our comprehensive approach transforms what could be a complex regulatory burden into a seamless extension of your supply chain strategy, delivering maximum financial benefits with minimal operational disruption.

Bonded Warehouse vs. FTZ: What's the Difference?

When exploring options for managing imported goods and optimizing duty payments, businesses often consider both bonded warehouses and Foreign Trade Zones. While these facilities share some similarities, they offer distinct advantages and limitations that can significantly impact your supply chain strategy. Understanding these differences is crucial for making informed decisions about which option best suits your specific business needs.

Fundamental Differences

Both bonded warehouses and Foreign Trade Zones allow for the deferral of customs duties and taxes, but they operate under different regulatory frameworks and offer varying degrees of flexibility:

Storage Time Limitations

Bonded Warehouses: Merchandise can be stored for up to five years before it must either enter U.S. commerce with duty payment or be exported. This time constraint can create artificial pressure on inventory management and market timing.

Foreign Trade Zones: Goods can be stored indefinitely with no time restrictions, providing maximum flexibility for inventory management. This unlimited storage capability allows businesses to respond strategically to market conditions without arbitrary deadlines.

The absence of time constraints in FTZs is particularly valuable for: – Seasonal merchandise that may need to be stored between selling seasons – Products with long sales cycles or unpredictable demand patterns – Strategic inventory positioned for regional distribution – Goods awaiting favorable market conditions or tariff changes

Permitted Activities

Bonded Warehouses: Activities are generally limited to storage with minimal manipulation allowed. While some cleaning, repacking, or sorting may be permitted, substantial manufacturing or processing operations are typically prohibited.

Foreign Trade Zones: FTZs permit a much broader range of activities, including: – Manufacturing and substantial transformation of goods – Assembly of components into finished products – Repackaging and relabeling – Cleaning, testing, and quality control – Mixing, blending, and combining of materials – Exhibition and demonstration – Repair and refurbishment

This operational flexibility makes FTZs particularly valuable for businesses that need to perform value-added activities on imported goods before they enter U.S. commerce or are re-exported.

Trade Flexibility

Bonded Warehouses: Generally focused on single-direction flow of goods, with limited options for complex supply chain operations.

Foreign Trade Zones: Support multi-directional movement of goods, including: – Zone- to-zone transfers without duty payment – Exports to foreign markets directly from the zone – Temporary removals for exhibition or testing – Ability to combine foreign and domestic merchandise – Strategic positioning of inventory for multiple markets

This enhanced flexibility allows FTZs to support more complex supply chain operations and serve as strategic hubs within global distribution networks.

Entry Procedures and Fee Structures

The administrative processes and fee structures also differ significantly between these options:

Entry Procedures

Bonded Warehouses: Typically require individual customs entries for each shipment entering the warehouse, with corresponding Merchandise Processing Fees (MPF) for each entry.

Foreign Trade Zones: Allow for weekly consolidated entries, combining all admissions for the week into a single customs entry. This consolidation dramatically reduces paperwork and associated fees, particularly for operations with frequent shipments.

For a business receiving multiple shipments weekly, the FTZ’s weekly entry provision can reduce annual MPF expenses by 80% or more compared to a bonded warehouse operation.

Geographic Considerations

Bonded Warehouses: Can be established in various locations but are typically concentrated near ports of entry or major transportation hubs.

Foreign Trade Zones: While also commonly located near ports, FTZs can be established in a wider variety of locations through the Alternative Site Framework, including: – Manufacturing facilities – Distribution centers – Industrial parks – Inland ports – Strategic logistics hubs

This geographic flexibility allows businesses to integrate FTZ benefits directly into their existing operational footprint rather than adapting to predetermined locations.

Comparative Advantages for Different Business Needs

The choice between a bonded warehouse and an FTZ often depends on your specific business requirements:

Ideal for Bonded Warehouses:

  • Short-term storage needs (less than 5 years)
  • Simple storage with minimal manipulation
  • Lower volume of shipments (where weekly entry savings are less significant)
  • Operations not requiring manufacturing or substantial transformation

Ideal for Foreign Trade Zones:

  • Long-term or indefinite storage requirements
  • Need for manufacturing, assembly, or substantial processing
  • High volume of shipments (maximizing weekly entry savings)
  • Complex supply chains serving both domestic and international markets
  • Operations requiring maximum flexibility in inventory management
  • Businesses seeking to mitigate the impact of tariffs and trade policy changes

The Komar Advantage: Fully Activated FTZs

At Komar Distribution Services, we’ve chosen to operate our facilities as fully activated Foreign Trade Zones rather than bonded warehouses, providing our clients with maximum flexibility and cost savings. Our FTZ operations deliver:

  • Unlimited storage duration without time constraints
  • Comprehensive manufacturing and processing capabilities
  • Weekly entry consolidation for significant MPF savings
  • Strategic locations near major ports and transportation networks
  • Seamless integration with your global supply chain

By choosing Komar’s FTZ solutions, you gain all the advantages of Foreign Trade Zones without the complexity of establishing and managing these specialized facilities yourself.

Setup Timeline & Onboarding

Implementing a Foreign Trade Zone strategy is a significant decision for any business engaged in international trade. Understanding the timeline and process for establishing FTZ operations is crucial for effective planning and resource allocation. At Komar Distribution Services, we’ve streamlined this process to minimize delays and accelerate your path to realizing FTZ benefits.

Traditional FTZ Establishment Timeline

For companies pursuing a new Foreign Trade Zone designation, the process typically involves several stages and can be time-consuming:

New FTZ Designation: 9-12 Months

1. Pre-Application Phase (1-2 months)

2. Feasibility assessment and site selection

3. Engagement with local FTZ grantee (port authority or economic development organization)

4. Development of business case and economic impact analysis

5. Application Preparation (2-3 months)

6. Drafting detailed application materials

7. Gathering supporting documentation

8. Coordination with local, state, and federal authorities

9. FTZ Board Review (4-5 months)

10. Public notice and comment period

11. Interagency review process

12. Board deliberation and decision

13. CBP Activation (2 months)

14. Development of inventory control procedures

15. Implementation of security measures

16. CBP inspection and approval

This extended timeline can significantly delay the realization of FTZ benefits and requires substantial investment in application preparation, consulting services, and implementation resources.

Accelerated Timeline with Komar Distribution Services

By leveraging Komar’s existing FTZ infrastructure, businesses can dramatically compress this timeline and begin realizing benefits almost immediately:

FTZ Activation within Existing FTZ: 30-60 Days

1. Initial Consultation and Assessment (1 week)

2. Evaluation of your specific needs and objectives

3. Identification of optimal FTZ strategy

4. Development of implementation roadmap

5. Operational Integration (2-3 weeks)

6. System setup and configuration

7. Establishment of inventory control procedures

8. Training and process documentation

9. CBP Coordination (2-4 weeks)

10. Preparation of activation documentation

11. Coordination with local CBP officials

12. Security and compliance verification

13. Go-Live and Optimization (1-2 weeks)

14. Initial operations under FTZ procedures

15. Process refinement and adjustment

16. Performance monitoring and optimization

This accelerated timeline allows businesses to begin capturing FTZ benefits within a matter of weeks rather than waiting nearly a year for a new designation.

Streamlined Onboarding Process

Our onboarding process is designed to ensure a smooth transition to FTZ operations with minimal disruption to your existing supply chain:

1. Strategic Assessment

We begin with a comprehensive assessment of your current import operations, focusing on: – Import volume and patterns – Product categories and duty rates – Current customs procedures – Existing supply chain structure – Specific cost-saving opportunities

This assessment establishes a baseline and identifies the highest-value opportunities for FTZ implementation.

2. Solution Design

Based on the assessment findings, we develop a tailored FTZ solution that addresses your specific needs: – Customized inventory management procedures – Integration with existing systems and processes – Specialized handling for high-duty or high-volume products – Training and documentation requirements – Performance metrics and success criteria

This solution design ensures that the FTZ implementation aligns perfectly with your business objectives

3. Implementation and Training

Our experienced team manages the technical and operational aspects of implementation: – System configuration and integration – Process documentation and standard operating procedures – Comprehensive training for your team members – Coordination with customs authorities – Testing and validation of all procedures

This thorough implementation approach ensures that all stakeholders are prepared for the transition to FTZ operations.

4. Go-Live Support

During the critical initial phase of operations, we provide enhanced support to ensure success: – On-site presence during initial transactions – Daily monitoring of operations and compliance – Rapid response to any issues or questions – Regular status updates and performance reviews – Continuous process refinement and optimization

This intensive support during the go-live period minimizes risks and accelerates the path to stable operations.

5. Ongoing Optimization

Once basic operations are established, we focus on continuous improvement: – Regular performance reviews against established metrics – Identification of additional savings opportunities – Process refinements to enhance efficiency – Updates to accommodate changing business needs – Strategic guidance on evolving trade policies

This commitment to ongoing optimization ensures that your FTZ operations continue to deliver maximum value as your business evolves.

Client Success Story

A leading consumer electronics importer approached Komar with concerns about rising tariffs on their Asian-sourced products. Through our accelerated FTZ implementation process, they were able to: – Begin FTZ operations within 45 days of initial engagement – Defer over $2.3 million in duties in the first quarter – Reduce MPF expenses by 87% through weekly entry filing – Implement a strategic inventory management approach that optimized duty payments based on sales forecasts

This rapid implementation allowed them to respond quickly to changing market conditions and maintain competitive pricing despite tariff increases.

By choosing Komar Distribution Services for your FTZ needs, you can bypass the lengthy traditional establishment process and begin realizing the benefits of Foreign Trade Zones in a fraction of the time, with minimal disruption to your existing operations.

Ready to get started?

Our FTZ Locations

Komar Distribution Services operates strategically located Foreign Trade Zone facilities designed to optimize your supply chain and maximize the benefits of FTZ operations. Our network provides comprehensive coverage of key import gateways and distribution hubs, allowing you to position inventory efficiently while leveraging all FTZ advantages.

Savannah, Georgia — FTZ 104

Our flagship facility in Savannah offers exceptional access to one of the fastest-growing ports in the United States, providing ideal positioning for East Coast and Southeastern distribution.

Facility Specifications

  • 760,000 ft. LEED-certified distribution center
  • Minutes from the Port of Savannah, the fourth-largest container port in the S.
  • Advanced material handling systems and automation
  • Climate-controlled storage capabilities
  • 36-foot clear heights with high-density racking options
  • 120 dock doors with cross-docking capabilities
  • Rail-served with direct CSX and Norfolk Southern access

Strategic Advantages

  • Rapid access to imported goods from the Port of Savannah
  • Excellent distribution positioning for the Eastern and Southeastern S.
  • Two-day ground delivery to over 70% of the S. population
  • Significant labor advantages compared to other East Coast locations
  • Strong local support from Georgia’s economic development programs
  • Ideal for apparel, automotive, and solar industries with specialized handling capabilities

Industry Focus

Our Savannah facility is particularly well-suited for: – Apparel and textile products – Automotive components and aftermarket parts – Solar panels and renewable energy equipment – Consumer electronics – Home furnishings and décor – Seasonal merchandise

Mira Loma, California — FTZ 244

Our West Coast facility in Mira Loma, California provides strategic access to the ports of Los Angeles and Long Beach, offering ideal positioning for Pacific Rim imports and West Coast distribution.

Facility Specifications

  • Strategic West Coast distribution hub
  • Proximity to the nation’s largest port complex (Los Angeles/Long Beach)
  • Advanced warehouse management systems
  • Specialized e-commerce fulfillment capabilities
  • Rapid turnaround and same-day parcel carrier pickups
  • Extensive value-added services capabilities
  • Cross-dock operations for efficient throughput

Strategic Advantages

  • Direct access to Asian imports through LA/Long Beach ports
  • Ideal positioning for West Coast distribution
  • Same-day delivery capabilities for Southern California
  • Two-day ground delivery to major Western markets
  • Specialized handling for high-value and time-sensitive merchandise
  • Excellent transportation connectivity via I-10 and I-15 corridors
  • Strategic positioning for e-commerce fulfillment operations

Industry Focus

Our Mira Loma facility specializes in serving: – E-commerce retailers – Consumer electronics – Fashion and apparel – Beauty and personal care products – Home goods and housewares – Specialty retail merchandise

Integrated Network Advantages

While each facility offers distinct geographic advantages, our integrated network approach provides additional benefits:

Seamless Zone-to-Zone Transfers

Merchandise can move between our FTZ locations without formal customs entry, allowing for strategic inventory positioning without triggering duty payments.

Unified Inventory Visibility

Our centralized systems provide complete visibility across all locations, enabling optimal inventory management and allocation decisions.

Consistent Processes and Systems

Standardized operations across all facilities ensure consistent quality, compliance, and performance regardless of which location handles your merchandise.

Flexible Multi-Region Strategy

Leverage both East and West Coast facilities to optimize your distribution network, reduce transportation costs, and improve delivery times to customers.

Disaster Recovery and Business Continuity

Multiple FTZ locations provide built-in redundancy and business continuity capabilities in case of regional disruptions or capacity constraints.

Expanding Network

Komar Distribution Services continues to expand our FTZ network to provide even greater geographic coverage and strategic advantages. Contact us to discuss our latest facility additions and how they might benefit your specific supply chain needs.

By strategically utilizing Komar’s FTZ locations, businesses can optimize their import operations, reduce transportation costs, improve delivery times, and maximize the financial benefits of Foreign Trade Zone operations.

How the FTZ Program Works

Understanding the operational flow of Foreign Trade Zone activities is essential for businesses looking to maximize the benefits of this powerful trade program. At Komar Distribution Services, we’ve refined these processes to create a seamless experience that delivers maximum value with minimal complexity.

The FTZ Operational Flow

Our FTZ operations follow a structured process designed to maintain full compliance while optimizing efficiency and cost savings:

1. Inbound Freight Arrival

The FTZ process begins when your imported merchandise arrives at a U.S. port of entry:

  • Shipments are documented with appropriate in-bond documentation
  • Customs assigns a unique in-bond number for tracking
  • Merchandise remains under customs supervision during transit
  • No duties or taxes are paid at this stage
  • Goods move directly to our FTZ facility without formal entry

This streamlined arrival process eliminates delays at the port and allows merchandise to move quickly into our FTZ facilities.

2. RFID-Enabled Admission

Upon arrival at our FTZ facility, merchandise undergoes a formal admission process:

  • Each shipment is assigned a unique admission number
  • RFID technology captures detailed product information
  • Items are logged into our secure, real-time inventory systems
  • Merchandise is now officially “admitted” to the FTZ
  • Detailed records are maintained for compliance purposes

This technology-driven admission process ensures accurate tracking from the moment goods enter our facility, establishing the foundation for effective FTZ management.

3. Storage and Inventory Management

Once admitted to the FTZ, merchandise can be stored indefinitely without time constraints:

  • Inventory is maintained in secure, organized storage locations
  • Real-time tracking provides complete visibility
  • Regular cycle counts ensure inventory accuracy
  • Climate-controlled environments available for sensitive products
  • Strategic inventory positioning based on velocity and demand patterns

Our advanced inventory management systems maintain the detailed records required for FTZ compliance while providing you with complete visibility into your inventory status.

4. Value-Added Processing

Within the FTZ, various value-added activities can be performed without triggering duty payments:

  • Kitting and assembly of components
  • Relabeling and repackaging
  • Quality inspection and testing
  • Minor repairs or modifications
  • Sorting, grading, and cleaning
  • Combining domestic and foreign components

These activities allow you to prepare products for specific markets or customers while maintaining the duty advantages of the FTZ.

5. Manufacturing and Production (with FTZ Board Approval)

For more substantial transformation activities, specific manufacturing authority can be obtained:

  • Production operations require FTZ Board approval
  • Once approved, manufacturing can occur within the FTZ
  • Potential for inverted tariff benefits on finished goods
  • Elimination of duties on waste, scrap, or yield loss
  • Combination of domestic and foreign inputs

While manufacturing authority requires additional approvals, it can provide significant duty savings for production operations.

6. Weekly Customs Entry Process

Instead of filing individual customs entries for each shipment, FTZs allow for weekly consolidated entries:

  • All shipments for the week are consolidated into a single entry
  • Entry is filed electronically with CBP
  • Single Merchandise Processing Fee (MPF) applies to the entire week
  • Duties are calculated based on merchandise entering S. commerce
  • Payment is made via Automated Clearing House (ACH)

This weekly entry process dramatically reduces administrative burden and MPF costs compared to traditional entry-by-entry processing

7. Outbound Shipment Options

Merchandise leaving the FTZ has several potential destinations, each with different customs implications:

Entering U.S. Commerce
  • Formal customs entry is filed (typically via weekly entry)
  • Duties and taxes are paid on goods entering domestic commerce
  • Merchandise is now in free circulation within the S.
  • Delivery to domestic customers or distribution centers
Export to Foreign Markets
  • Merchandise can be exported directly from the FTZ
  • No duties or taxes are ever paid on exported goods
  • Export documentation is prepared and filed
  • Goods move under customs supervision to port of export
Transfer to Another FTZ
  • Merchandise can move between FTZs without duty payment
  • In-bond documentation facilitates the transfer
  • Customs supervision is maintained throughout
  • Receiving FTZ admits the merchandise under their procedures

These flexible outbound options allow for strategic management of duty payments based on final destination.

Technology Integration

Komar’s FTZ operations are powered by sophisticated technology solutions that ensure compliance while enhancing efficiency:

  • Automated Inventory Management: Real-time tracking of all merchandise movements
  • Electronic Documentation: Digital processing of all customs documentation
  • RFID Tracking: Enhanced visibility and accuracy in inventory control
  • Integrated Customs Filing: Seamless preparation and submission of weekly entries
  • Business Intelligence Reporting: Advanced analytics for performance optimization
  • Client Portal Access: Secure visibility into your FTZ inventory and activities

This technology infrastructure eliminates manual processes, reduces errors, and provides complete transparency into your FTZ operations.

Compliance and Governance

Maintaining strict regulatory compliance is fundamental to successful FTZ operations:

  • Regular internal compliance reviews and audits
  • Documented standard operating procedures
  • Ongoing staff training and certification
  • Periodic CBP compliance assessments
  • Continuous monitoring of regulatory changes
  • Proactive issue identification and resolution

Our rigorous compliance framework ensures that your FTZ operations remain in full adherence with all regulatory requirements, minimizing risk while maximizing benefits.

By leveraging Komar Distribution Services’ expertise and infrastructure, you can navigate the complexities of FTZ operations with confidence, focusing on the strategic benefits while we manage the operational details.

Industries We Serve

Komar Distribution Services’ Foreign Trade Zone solutions deliver significant benefits across a wide range of industries. Our specialized expertise and infrastructure are tailored to address the unique challenges and opportunities faced by businesses in

various sectors. Here’s how our FTZ capabilities can transform operations in key industries:

Apparel & Fashion

The apparel and fashion industry faces particular challenges with high duty rates, seasonal inventory management, and complex global supply chains. Our FTZ solutions provide:

  • Duty deferral on seasonal inventory until items enter commerce
  • Weekly entry filing to dramatically reduce MPF costs on high-SKU operations
  • Specialized handling for garments requiring hanging storage
  • Value-added services including ticketing, tagging, and retail preparation
  • Duty elimination on returned or unsold merchandise
  • Climate-controlled storage for delicate fabrics and materials

Fashion brands working with Komar typically see 15-25% reductions in overall landed costs through our comprehensive FTZ approach, as demonstrated in our apparel brand case study.

Beauty & Personal Care

For beauty and personal care products, our FTZ operations offer specialized advantages:

  • Temperature and humidity-controlled storage for sensitive formulations
  • Lot and batch tracking for quality control and regulatory compliance
  • FDA-compliant handling procedures for regulated products
  • Specialized labeling and packaging services for different market requirements
  • Duty deferral benefits on high-value imported ingredients and components
  • Streamlined handling of products with limited shelf life

Our beauty industry clients benefit from both cost savings and enhanced inventory management capabilities that support their unique product requirements.

Electronics & IoT

The electronics industry deals with high-value components, rapid obsolescence, and complex supply chains. Our FTZ solutions address these challenges through:

  • Secure handling of high-value electronic components and finished goods
  • Duty deferral on expensive imported components
  • Assembly and kitting services within the FTZ
  • Specialized ESD (electrostatic discharge) protection protocols
  • Serial number tracking for warranty and quality control
  • Duty elimination on returned, obsolete, or damaged merchandise

Electronics manufacturers and distributors working with Komar typically achieve 7-12% reductions in overall supply chain costs through our FTZ operations.

Automotive

The automotive sector benefits significantly from FTZ operations due to complex supply chains and substantial import volumes:

  • Duty deferral on imported components and parts
  • Potential inverted tariff benefits for assembly operations
  • Just-in-time inventory management for production support
  • Specialized handling for heavy and oversized components
  • Kitting services for assembly line efficiency
  • Quality control and testing capabilities within the FTZ

Our automotive clients leverage our FTZ capabilities to maintain competitive pricing while optimizing their supply chain operations.

Furniture

The furniture industry faces unique challenges with bulky items, high duty rates, and seasonal demand patterns:

  • Duty deferral benefits on imported furniture and components
  • Specialized handling for large and fragile items
  • White glove services for high-end merchandise
  • Assembly and light manufacturing capabilities
  • Flexible storage solutions for seasonal inventory management
  • Specialized packaging for damage prevention

Furniture importers working with Komar typically reduce their overall landed costs by 10-18% through our FTZ solutions.

Pet Supplies

The growing pet products industry benefits from our FTZ operations through:

  • Duty deferral on imported pet products and accessories
  • FDA-compliant handling for pet food and treats
  • Specialized storage for temperature-sensitive items
  • Kitting and bundling services for retail promotions
  • Lot tracking for quality control and recalls
  • Efficient handling of bulky items like pet furniture and large bags of food

Our pet supply clients leverage our FTZ capabilities to maintain competitive pricing while ensuring regulatory compliance.

Outdoor and Sporting Goods

For outdoor and sporting goods companies, our FTZ solutions provide:

  • Duty deferral on seasonal merchandise (summer/winter sports equipment)
  • Specialized handling for oversized items like kayaks, bicycles, and fitness equipment
  • Assembly services for products requiring partial assembly
  • Kitting services for retail-ready packaging
  • Duty elimination on returned seasonal merchandise
  • Strategic inventory positioning for seasonal demand patterns

Outdoor and sporting goods companies working with Komar typically achieve 12-20% improvements in inventory carrying costs through our strategic FTZ approach.

Industry-Specific Expertise

Beyond our general FTZ capabilities, Komar Distribution Services has developed specialized expertise in addressing industry-specific challenges:

  • Regulatory Compliance: Our team understands the unique regulatory requirements for different product categories, ensuring compliant handling of FDA- regulated products, hazardous materials, and other specialized
  • Specialized Equipment: Our facilities are equipped with industry-specific material handling equipment and storage solutions tailored to the unique requirements of different product types.
  • Value-Added Services: We offer customized value-added services aligned with industry-specific needs, from specialized labeling for apparel to assembly services for electronics and furniture.
  • Industry-Specific Metrics: Our reporting and analytics are tailored to provide the specific insights most valuable to each industry, from seasonal inventory optimization for fashion to lot tracking for beauty

By combining our deep FTZ expertise with industry-specific knowledge and capabilities, Komar Distribution Services delivers tailored solutions that address the unique challenges and opportunities in your specific sector.

Case Study: Apparel Brand Cost Savings

Challenge: Rising Costs and Competitive Pressures

A leading national apparel brand faced significant challenges that were threatening their market position and profitability:

  • High Merchandise Processing Fees (MPF) due to frequent shipments from multiple Asian manufacturing partners
  • Substantial duty payments creating cash flow constraints
  • Inverted tariff issues on imported apparel components
  • Seasonal inventory challenges requiring extended storage periods
  • Increasing competition from direct-to-consumer brands with lower overhead

The company was importing over 200 containers annually, with each shipment requiring separate customs entries and incurring individual MPF charges. With duty rates averaging 15-20% on finished apparel, the company was paying over $5 million annually in duties and fees, significantly impacting their cash flow and pricing competitiveness.

Solution: Strategic FTZ Implementation

After a comprehensive analysis of their import patterns and supply chain structure, Komar Distribution Services recommended shifting their high-volume SKUs into our Savannah FTZ operations. The implementation strategy included:

  1. Phased Migration of inventory to Komar’s Savannah FTZ facility, prioritizing high- duty items and frequent shipments
  2. Weekly Entry Processing to consolidate all customs entries into a single weekly filing
  3. Strategic Inventory Positioning to align duty payments with sales cycles
  4. Implementation of RFID Tracking for enhanced inventory visibility and compliance
  5. Integration with the Client’s ERP System for seamless order processing and fulfillment

The transition was completed within 45 days, with minimal disruption to ongoing operations. Komar’s experienced FTZ team managed all aspects of CBP coordination, system configuration, and process implementation.

Impact: Transformative Results

The implementation of Komar’s FTZ solution delivered immediate and substantial benefits:

Financial Impact

  • $1.2 million in annual duty deferrals, significantly improving cash flow
  • 18% reduction in total landed cost through combined duty deferral, MPF savings, and operational efficiencies
  • 92% reduction in Merchandise Processing Fees through weekly entry consolidation
  • Elimination of duties on returned merchandise, saving approximately $180,000 annually

Operational Improvements

  • 3-day faster average order cycle through strategic inventory positioning
  • Enhanced inventory accuracy from 94% to 7% through RFID implementation
  • Improved forecasting capabilities through real-time visibility into inventory status
  • Streamlined customs compliance with automated documentation and filing

Strategic Advantages

  • Increased pricing flexibility due to reduced landed costs
  • Improved responsiveness to market trends through faster inventory deployment
  • Enhanced competitive position against direct-to-consumer brands
  • Greater resilience against tariff fluctuations and trade policy changes

Client Testimonial

“Implementing Komar’s FTZ solution transformed our approach to imports and inventory management. Beyond the substantial cost savings, which exceeded our initial projections, we’ve gained strategic flexibility that allows us to respond more effectively to market changes and competitive pressures. The expertise of Komar’s team made what seemed like a complex transition remarkably smooth and straightforward.” — VP of Supply Chain, National Apparel Brand

Long-Term Evolution

Building on the initial success, the partnership has continued to evolve:

  • Expansion to include Komar’s West Coast FTZ facility for faster service to western markets
  • Implementation of advanced analytics for duty optimization across product categories
  • Development of specialized handling procedures for high-fashion items requiring special care
  • Integration of e-commerce fulfillment capabilities directly from the FTZ

This ongoing collaboration has continued to deliver increasing value, with cumulative savings now exceeding $7 million over three years while supporting the client’s 23% growth in sales volume during the same period.

Key Takeaways

This case study demonstrates how Komar Distribution Services’ FTZ solutions can deliver transformative results for apparel companies facing similar challenges:

  1. Immediate Financial Impact through duty deferral and MPF reduction
  2. Operational Enhancements that improve efficiency and accuracy
  3. Strategic Advantages that strengthen competitive positioning
  4. Scalable Solutions that grow with your business
  5. Expert Implementation that minimizes disruption and maximizes results

Whether you’re dealing with high-duty products, frequent shipments, seasonal inventory challenges, or competitive pressures, Komar’s FTZ solutions can help you achieve similar transformative results. Contact us to explore how we can tailor an FTZ strategy for your specific needs.

Frequently Asked Questions

Do FTZs speed up customs clearance?

Yes, Foreign Trade Zones significantly streamline customs processing. While FTZs don’t directly accelerate CBP’s formal entry procedures, they create a substantial operational advantage by allowing goods to move into inventory immediately without waiting for formal entry filing.

When merchandise arrives at a port of entry destined for an FTZ, it can be transferred in- bond directly to the zone without going through the standard customs entry process.

This means your goods can be received, processed, and made available for order fulfillment much faster than through traditional import channels.

Additionally, the weekly entry process consolidates what would otherwise be multiple daily entries into a single filing, dramatically reducing paperwork and administrative processing time. At Komar Distribution Services, our established relationships with CBP and streamlined procedures ensure the most efficient possible movement of your goods from port to shelf.

Is FTZ administration complex?

Not with Komar. While FTZ operations do require adherence to specific regulatory requirements established by U.S. Customs and Border Protection, our comprehensive management approach eliminates this complexity for our clients.

We automate admissions, weekly entries, inventory reconciliation, and compliance reporting to make FTZ operations simple and worry-free. Our dedicated FTZ compliance team handles all aspects of regulatory adherence, including:

  • Preparation and filing of all required documentation
  • Maintenance of detailed inventory records
  • Coordination with CBP for examinations and audits
  • Implementation of required security measures
  • Regular compliance reviews and self-assessments

With Komar managing your FTZ operations, you receive all the benefits without the administrative burden. Our clients frequently report that their finance and logistics teams spend less time on customs compliance after implementing our FTZ solutions than they did with traditional import processes.

How do FTZs impact my existing supply chain?

When implemented properly, FTZ operations integrate seamlessly with your existing supply chain while enhancing its capabilities. At Komar Distribution Services, we design our FTZ solutions to complement and optimize your current processes rather than disrupting them.

Key integration points include:

  • System Integration: Our FTZ management systems can interface with your existing ERP, WMS, and order management platforms to ensure seamless data
  • Process Alignment: We adapt our FTZ procedures to align with your established business processes, minimizing operational changes.
  • Phased Implementation: Our staged approach allows for gradual transition, starting with high-value or high-volume products to demonstrate benefits before full
  • Training and Support: We provide comprehensive training for your team members who interact with FTZ operations, ensuring smooth collaboration.

Most clients experience minimal disruption during implementation, with the transition typically completed within 30-60 days. The resulting improvements in inventory visibility, cost reduction, and process efficiency often enhance overall supply chain performance beyond the direct FTZ benefits.

Can small and medium businesses benefit from FTZs?

Absolutely. While FTZs have traditionally been associated with large multinational corporations, Komar Distribution Services has made these powerful trade advantages accessible to businesses of all sizes.

By leveraging our existing FTZ infrastructure, small and medium enterprises can realize significant benefits without the capital investment and administrative overhead typically associated with establishing independent FTZ operations. Benefits particularly valuable for smaller businesses include:

  • Cash Flow Enhancement: Duty deferral can be especially impactful for smaller companies with limited working capital.
  • Competitive Positioning: FTZ benefits can level the playing field with larger competitors who may already be utilizing these advantages.
  • Scalable Implementation: Our solutions can be tailored to your current volume with the ability to scale as your business
  • Expertise Access: Gain the benefits of our specialized FTZ knowledge without having to develop this expertise internally.

We’ve successfully implemented FTZ solutions for businesses importing as few as 50 containers annually, demonstrating that these benefits are accessible even at moderate import volumes.

How do tariff changes affect FTZ operations?

Foreign Trade Zones provide significant strategic advantages during periods of tariff volatility and trade policy changes. By creating a buffer between import and formal entry into U.S. commerce, FTZs offer flexibility in responding to shifting tariff landscapes.

Key advantages during tariff changes include:

  • Strategic Timing: Merchandise can remain in the FTZ until tariff situations stabilize or improve before entering U.S. commerce.
  • Re-Export Options: If new tariffs make the S. market less viable, goods can be re-exported without ever paying U.S. duties.
  • Manufacturing Alternatives: With manufacturing authority, companies can transform products within the FTZ to potentially qualify for more favorable duty treatment.
  • Duty Deferral Advantage: During periods of high tariffs, the cash flow benefit of duty deferral becomes even more

Komar’s FTZ experts continuously monitor trade policy developments and provide strategic guidance on optimizing your FTZ strategy in response to changing tariff environments.

What types of merchandise can be placed in an FTZ?

Most foreign and domestic merchandise may be admitted to a Foreign Trade Zone, with limited exceptions. Eligible merchandise includes:

  • Raw materials and components
  • Finished consumer goods
  • Manufacturing equipment
  • Retail merchandise
  • Spare parts and supplies
  • Perishable goods (with appropriate facilities) Prohibited items generally include:
  • Merchandise that violates S. copyright, trademark, or patent laws
  • Items explicitly prohibited from entry into the United States
  • Certain hazardous materials without proper permits and handling

Komar Distribution Services can help determine the eligibility of your specific products and develop appropriate handling procedures for specialized merchandise categories.

What types of merchandise can be placed in an FTZ?

Most foreign and domestic merchandise may be admitted to a Foreign Trade Zone, with limited exceptions. Eligible merchandise includes:

  • Raw materials and components
  • Finished consumer goods
  • Manufacturing equipment
  • Retail merchandise
  • Spare parts and supplies
  • Perishable goods (with appropriate facilities) Prohibited items generally include:
  • Merchandise that violates S. copyright, trademark, or patent laws
  • Items explicitly prohibited from entry into the United States
  • Certain hazardous materials without proper permits and handling

Komar Distribution Services can help determine the eligibility of your specific products and develop appropriate handling procedures for specialized merchandise categories.

How does inventory management work in an FTZ?

Inventory management within a Foreign Trade Zone requires specialized systems and procedures to maintain the detailed tracking required by CBP while supporting efficient business operations.

Komar’s advanced inventory management approach includes:

  • RFID Technology: We employ RFID tracking to ensure accurate, real-time inventory visibility at the SKU level.
  • Perpetual Inventory: Our systems maintain continuous inventory records with regular cycle counting for verification.
  • Lot and Serial Tracking: When required, we maintain detailed lot, batch, or serial number tracking for quality control and compliance.
  • Status Tracking: Our systems monitor the customs status of all merchandise (privileged foreign, non-privileged foreign, domestic, ).
  • Automated Reconciliation: Regular automated reconciliation processes ensure inventory accuracy and compliance.
  • Client Visibility: Secure portal access provides you with real-time visibility into your inventory status and movements.

This comprehensive approach ensures both regulatory compliance and optimal inventory management for your business operations.

What happens if I need to return or destroy merchandise in an FTZ?

One of the significant advantages of FTZ operations is the favorable treatment of returned, damaged, or destroyed merchandise. Since goods in an FTZ have not yet entered U.S. commerce or paid duties, several advantageous options exist:

  • Returns to Foreign Suppliers: Merchandise can be returned to foreign suppliers without ever paying U.S. duties or taxes.
  • Destruction Under Supervision: Damaged or obsolete goods can be destroyed under CBP supervision, eliminating any duty obligation.
  • Donation Options: In some cases, merchandise may be donated to approved charitable organizations without duty payment.
  • Waste and Scrap Handling: Manufacturing operations in FTZs benefit from no duties being assessed on waste, scrap, or yield loss.

Komar Distribution Services manages all documentation and coordination required for these processes, ensuring compliance while maximizing the financial benefits of these options.

How do I get started with Komar's FTZ services?

Beginning your FTZ journey with Komar Distribution Services is straightforward and designed to deliver value quickly. Our onboarding process includes:

  1. Initial Consultation: We begin with a comprehensive discussion of your current import operations, challenges, and objectives.
  2. Opportunity Assessment: Our team analyzes your import data to quantify potential savings and benefits from FTZ
  3. Solution Design: We develop a tailored FTZ strategy aligned with your specific business needs and objectives.
  4. Implementation Planning: A detailed implementation plan is created, including timeline, resource requirements, and key
  5. Execution: Our experienced team manages the transition to FTZ operations, including all regulatory coordination and system
  6. Optimization: Once basic operations are established, we continuously refine processes to maximize benefits.

Contact us today for a free duty-savings analysis and to begin your journey toward transforming your import operations through Foreign Trade Zone advantages.

Get Started

Ready to unlock Foreign Trade Zone benefits for your business? Komar Distribution Services makes it easy to implement FTZ strategies that can transform your import operations, reduce costs, and enhance your competitive position.

Free Duty-Savings Analysis

Take the first step toward optimizing your import operations with our complimentary duty-savings analysis. This comprehensive assessment includes:

  • Detailed analysis of your current import patterns and duty exposure
  • Calculation of potential duty deferral benefits
  • Estimation of MPF savings through weekly entry
  • Identification of potential inverted tariff opportunities
  • Assessment of cash flow impact from FTZ implementation
  • Customized recommendations for your specific business needs

Our analysis provides concrete, quantifiable projections of the benefits you can expect from implementing an FTZ strategy with Komar Distribution Services.

Rapid Implementation Timeline

Unlike traditional FTZ setups that can take 9-12 months, Komar’s existing FTZ infrastructure allows you to begin realizing benefits within 30-60 days. Our streamlined implementation process includes:

  1. Initial consultation and needs assessment
  2. Data analysis and solution design
  3. System configuration and integration
  4. Process documentation and training
  5. CBP coordination and activation
  6. Go-live and optimization

This accelerated timeline means you can start capturing FTZ benefits almost immediately, without the lengthy delays typically associated with new FTZ establishments.

Comprehensive Support

When you partner with Komar Distribution Services for your FTZ needs, you gain access to our complete suite of support services:

  • Dedicated account management team
  • FTZ compliance expertise
  • Advanced technology solutions
  • Ongoing optimization and analysis
  • Regular performance reviews
  • Strategic guidance on trade policy impacts

Our comprehensive approach ensures that you receive maximum value from your FTZ implementation while minimizing the operational complexity typically associated with these specialized operations.

Contact Komar Distribution Services Today

Take the next step toward transforming your import operations through the power of Foreign Trade Zones. Our team of experts is ready to guide you through the process and help you unlock the substantial benefits of FTZ operations.

Contact us today to schedule your free duty-savings analysis and discover how Komar Distribution Services can help your business thrive in today’s complex global trade environment.