FTZ vs Bonded Warehouse: Which is Right for You?
Both Foreign Trade Zones and bonded warehouses offer duty deferral, but they work differently. Learn which option makes sense for your business.
General information, not customs advice — rules vary by product and change often. Have a customs broker confirm the specifics for your case.
Foreign Trade Zone (FTZ)
A designated area within the US that's considered outside US customs territory for duty purposes. Goods can be stored, manufactured, and processed without paying duties until they enter US commerce.
Learn about our FTZBonded Warehouse
A government-authorized warehouse where imported goods can be stored for up to 5 years without paying duties. Duties are paid when goods leave the warehouse to enter US commerce.
Learn about bonded warehousingSide-by-Side Comparison
FTZ is Best For
- Manufacturing or assembly operations
- Products with inverted tariffs (components cost more than finished goods)
- Long-term storage needs (over 5 years)
- High-volume importers wanting to consolidate entries
- Companies re-exporting significant volume to other countries
Bonded Warehouse is Best For
- Simple storage without manufacturing
- Goods that will definitely enter US commerce
- Temporary storage while arranging sales
- Importers not needing inverted tariff benefits
- Lower-volume operations
Common Questions
FTZ: no time limit. Bonded warehouse: maximum 5 years, after which goods must be exported, entered into US commerce, or destroyed.
Five things: product dimensions and pallet specs (and whether pallets stack), pallets per month plus any starting safety stock, number of SKUs, country of origin (domestic vs. foreign material decides which zone services apply), and where releases go — your customer's dock, their forwarder, or local delivery.
Yes — that's the core of the operation. Your full inbound stays in storage and we release pallet by pallet (or truckload by truckload) as orders come in, with the paperwork handled on each release.
Days, not months. Once the POA (power of attorney) is signed we set you up in our system, send shipping instructions for your supplier and carrier, and you can route the first shipment.
Inbound: a commercial invoice and packing list — we handle the zone admission. Outbound: we prepare the release and coordinate the paperwork with your customer or their broker.
For most importers the FTZ comes out ahead — no storage time limit and more flexibility for kitting, processing, and partial releases. Our Laredo facility operates as a Foreign-Trade Zone. Tell us your flow and we'll confirm the right setup for your case.
Not sure which is right for you?
We provide duty-deferred warehousing in Laredo. Let us help you choose the best option for your business.