Foreign Trade Zones (FTZ) are areas legally outside the Customs territory of the United States. Their purpose is to attract and promote international trade and commerce, in part, by deferring the payment of duties and taxes until merchandise is withdrawn. In Los Angeles we currently work with a number of FTZs and with our sophisticated software running through ACE we are able to work with FTZs anywhere in the U.S.
FTZ WEEKLY ENTRY PROGRAM – beat your competition with this outstanding program – ship same day and pay duty only on what you ship ? once a month! Increase cash flow based on current inventory turnover. No more “tax paid” inventory to keep on hand to fill customer orders. Contact us for details and how we can help you get set up with this unique program.
WEEKLY ENTRY SAVINGS
Once Customs approves an Importer to use the Weekly Entry program, we will file a blanket release each week for the following week. Last weeks withdrawals are reconciled and consolidated into one Customs entry and duty/tax is assessed only on the actual quantity withdrawn. The effect is to literally turn your bonded inventory into “domestic’ merchandise for your sales force. Your ability to ship same day to your customer is limited only by the physical capabilities of the FTZ.
Our clients utilizing the FTZ Weekly Entry Program deliver faster and at lower cost than their competition.
If you import high value merchandise multiple times per week, Weekly Entry can provide significant savings on the Merchandise Processing Fee (MPF) which may reduce cost because it is assessed against the net entered value of each Customs entry. On January 1, 2018, MPF was increased to a per entry minimum of $25.67 or 0.3464% whichever is greater, to a maximum of $497.99. The higher the value of your merchandise, the greater the potential for savings. Here is an example of an importer with an average of five (5) shipments or bonded warehouse withdrawals per week of duty free merchandise with a value equal to or greater than $143762.00:
Example of Weekly Entry Savings:
| 250 entries per year at $497.99 MPF each (not utilizing FTZ): | $ | 124,498 |
| 52 entries per year at $497.99 MPF each (using FTZ): | $ | 25,895 |
| Annual FTZ weekly entry savings: | $ | 98,603 |
FTZ Duty Deferral Savings Example
Clients on the FTZ Weekly Entry Program have realized improved cash flow while providing faster response to customers’ needs.
| Article Description: | Golf Clubs | |
|---|---|---|
| Annual Dollar Volume: | $ | 10,000,000 |
| Duty Rate: | 5% | |
| Annual Duty Liability: | $ | 500,000 |
| Cost of Money (estimate) | 10% | |
| Annual Savings if Article does not enter US: | $ | 50,000 |
| 365 days per year: | $ | 137 |
| Average number of days article remains in inventory: | 90 | |
| Cash flow increase through duty deferral: | $ | 12,330 |
