When businesses hear about Foreign-Trade Zones (FTZs), they often think of them as a single, fixed setup. But depending on your needs, FTZ use can be short-term or long-term. And right now, with shifting tariff policies and market volatility, knowing the difference between the two matters more than ever.

At JA Group, we help importers and manufacturers decide what kind of FTZ setup makes the most sense for their operation—short-term FTZs vs long-term FTZs. Here’s how they compare:

Short-Term FTZ Use (90 Days or Less)

• Used for temporary tariff reprieves, such as the recent 90-day U.S.–China tariff rollback.
   
• Helps businesses capitalize on narrow windows of reduced duty exposure.
   
• Useful for front-loading inventory or clearing seasonal surges without paying full tariff rates.
   
• Fast to implement but limited in duration—requires careful timing and coordination.
   
• Works best when you have quick-turn inventory cycles or want to avoid long-term facility changes.
   

Long-Term FTZ Use (Permanent or Year-Round)

• Built into your core supply chain strategy.
   
• Offers ongoing benefits, like deferred duties, inverted tariff advantages, and cost savings on exports, waste, and reclassification.
   
• Ideal for businesses with steady import volume or domestic manufacturing tied to global sourcing.
   
• Requires an approved FTZ site, regular recordkeeping, and customs compliance processes.
   
• Provides predictability and planning stability, even when trade policies fluctuate.
   

Key Takeaway

Short-term FTZ use gives you flexibility during trade turbulence. Long-term FTZs provide you with structure and savings year-round.

Companies sometimes do both—leveraging temporary programs while building toward a permanent FTZ footprint that aligns with their growth.

At JA Group, we guide clients through both models. Whether you're navigating a sudden change in tariff policy or planning a more profound shift in how your goods move, we’ll help you get the most out of your FTZ strategy.

Need help deciding which FTZ model works for your business? Let’s map it out together.