For companies that import finished goods, components, or raw materials into the United States, the Foreign Trade Zone (FTZ) program offers one of the most powerful tools for reducing supply chain costs, improving cash flow, and increasing operational efficiency.

This guide summarizes the core financial benefits of FTZ participation using real-world ranges derived from multiple feasibility studies conducted in partnership with ITC Diligence International.

Financial & Operational Benefits of FTZ Participation

1. Weekly Entry Savings

Immediate, measurable annual savings

Most importers submit dozens of Customs entries each week. Each entry carries a Merchandise Processing Fee (MPF) capped at $634.62 per entry. With FTZ activation, all entries are consolidated into a single weekly entry.

Typical Savings Range

For importers filing 12–15 entries per week:

→ $80,000 – $90,000 per year

These savings begin immediately upon FTZ activation, making this one of the fastest ROI components.

2. Duty Deferral (Cash-Flow Advantage)

The FTZ acts as a built-in interest-free loan

Under standard import rules, duties must be paid the moment goods enter the U.S. Inside an FTZ, duties are postponed until merchandise is released to U.S. commerce.

Why This Matters

For companies with 30–120 days of inventory aging, deferring duty payments significantly improves working capital, reduces borrowing, and strengthens liquidity.

Typical Savings Range

Across mid-market importers paying $5M–$20M annually in duties, typical deferral value is:

→ $150,000 – $550,000 per year

Even smaller importers routinely gain five-figure annual cash-flow value from duty deferral alone.

3. Duty Elimination (Export & Scrap Savings)

Total elimination of duties for qualifying merchandise

Duty elimination applies to:

• Goods exported directly from FTZ
• Products transferred to duty-free retail or international customers
• Inventory scrapped, destroyed, or never entering U.S. commerce
• Components incorporated into finished goods that ship abroad

Typical Savings Range

Depending on export volume (2–10% of annual inventory movement), companies often achieve:

→ $150,000 – $250,000 per year

Export-heavy operations can exceed $1M+ annually in duty elimination.

4. Additional Financial & Operational Benefits

Brokerage Fee Reduction

Weekly entry replaces dozens of brokerage submissions.

Typical savings Range

→ $40,000 – $60,000 annually

Reduced Shrink & Greater Inventory Accuracy

FTZ software enforces higher inventory controls, improving accuracy and reducing loss.

Faster Inbound Processing

Goods can be admitted directly into the FTZ, bypassing port delays tied to Customs release.

Operational Flexibility

Companies can relabel, repackage, kitting, or inspect merchandise before duties apply, avoiding rework costs outside the zone.

5. Total Annual FTZ Value: Real-World Benchmarks

Below are two common importer profiles illustrating real-world FTZ performance:

Company A: Mid-Size Consumer Goods Importer 

• 10-15 ocean containers/week
• 300-600 Customs entries per month
  
• Low export volume (<2%)
• Moderate SKU count (5,000-15,000 SKUs)

• Weekly Entry Savings: $80,000-$95,000
• Duty Deferral (Cash-flow improvement): $150,000-$250,000
• Duty Elimination (small export/scrap): ~$25,000-$50,000
• Additional Soft Savings: $40,000-$60,000

Total Estimated Annual FTZ Benefit: $300,000-$450,000

This profile aligns with many mid-market distributors and lifestyle brands.

Company B: Large Importer With High SKU Complexity

Shipping Profile:

• 25-40 ocean containers/week
• 1,000-2,000 Customs entries per month
  
• Moderate export activity (3-5%)
• High SKU count (30,000-75,000+)

Duty Spend: $12M-$25M per year
Inventory Aging: 90-120 days

Estimated FTZ Savings:

• Weekly Entry Savings: $90,000-$120,000
• Duty Deferral (Cash-flow improvement): $300,000-$600,000
• Duty Elimination: $150,000-$250,000
• Additional Soft Savings: $75,000-$100,000

Total Estimated Annual FTZ Benefit: $600,000-$1,000,000+

This is a common profile for consumer electronics, toys, specialty retail, and home goods importers. 

Company C: Industrial/Manufacturing Importer with Strong Export Volume

Shipping Profile:

• 8-12 ocean containers/week
• 200-400 Customs entries per month
  
• High export activity (10-25%)
• Moderate SKU count (2,000-10,000)

Duty Spend: $3M-$8M per year
Inventory Aging: 30-60 days

Estimated FTZ Savings:

• Weekly Entry Savings: $60,000-$80,000
• Duty Deferral: $50,000-$150,000
• Duty Elimination: $500,000-$2,000,000+ (export-heavy operations)
• Additional Soft Savings: $25,000-$40,000

Total Estimated Annual FTZ Benefit: $700,000-$2,300,000+

This aligns with industrial manufacturers, automotive suppliers, and companies exporting complex subassemblies.

6. FTZ Impact on Working Capital & Financial Health

Duty deferral transforms inventory into a cash-flow engine:

• Delays duty payments by 30–120 days
• Frees hundreds of thousands in working capital
• Lowers interest expense
• Creates liquidity without borrowing
• Improves EBITDA and financial resilience

The FTZ program is one of the few supply chain initiatives that drives both operational efficiency and financial performance.

7. Why Companies Choose the FTZ Program

✔ Significant annual cost reductions

✔ Improved cash flow and liquidity

✔ Faster and more reliable inbound logistics

✔ Stronger inventory controls and fewer compliance risks

✔ Flexible operations inside the zone (rework, relabeling, kitting)

✔ High ROI within 6–12 months

Across all GLI-supported feasibility studies, annual FTZ value has consistently landed in the range of:

→ $300,000 – $3M+ per year

The Bottom Line for Importers

The U.S. Foreign Trade Zone program is one of the most impactful yet underutilized cost saving tools available to importers. Whether your company is looking to reduce duty exposure, improve cash flow, or streamline Customs operations, the FTZ delivers immediate and sustainable financial value. GLI and ITC Diligence International partner together to help companies:

• Evaluate FTZ feasibility
• Build the business case
• Execute the conversion
• Manage ongoing FTZ compliance and operations

Thinking about an FTZ? We’ll make it simple.

From feasibility to activation, GLI and ITC Diligence International guide you step-by-step — and we’ll build the numbers for you.

Get a no-cost assessment and see how much your business could save.