For companies moving international freight, staying competitive means managing landed costs down to the dollar. One of the most underutilized tools? Foreign-Trade Zones (FTZs). These secure, designated areas within the U.S. allow importers to delay, reduce, or eliminate customs duties while boosting efficiency and flexibility. At JA Group, we help clients tap into the full value FTZs bring to the table.

Here are five ways FTZs can help cut costs and increase your bottom line:

1. Defer Duty Payments

Goods in an FTZ are not subject to U.S. Customs duties until they leave the zone and enter U.S. commerce. That means:

• You delay payment until the product is actually sold
   
• You improve cash flow by holding inventory duty-free
   
• If the product is re-exported, no duties are ever paid
   

2. Reduce Duties with Inverted Tariffs

If your finished product has a lower duty rate than the parts used to make it, FTZs allow you to:

• Pay the lower duty rate on the final product
   
• Cut total duty costs on manufacturing and assembly
   

3. Avoid Duties on Waste, Scrap, and Exports

You don’t pay duty on waste material or goods if they never enter U.S. commerce. This helps you:

• Eliminate costs on discarded or damaged imports
   
• Reduce expenses on re-exported goods
   

4. Improve Inventory Control

FTZs require strict recordkeeping, meaning:

• More accurate inventory tracking
   
• Tighter control over compliance
   
• Fewer errors and faster audits
   

5. Simplify Customs Processes

FTZ users benefit from consolidated entries and streamlined processes:

• Reduce paperwork
   
• Lower brokerage fees
   
• Improve operational efficiency
   

Using FTZs isn’t just about cutting a few costs—it’s about creating a competitive advantage in a volatile global trade environment.

At JA Group, we specialize in helping importers navigate FTZ benefits, compliance, and strategy from start to finish. If you’re ready to explore how Foreign-Trade Zones can support your growth, let’s connect.