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.
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.
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.
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.
For companies with 30–120 days of inventory aging, deferring duty payments significantly improves working capital, reduces borrowing, and strengthens liquidity.
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.
Duty elimination applies to:
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.
Weekly entry replaces dozens of brokerage submissions.
→ $40,000 – $60,000 annually
FTZ software enforces higher inventory controls, improving accuracy and reducing loss.
Goods can be admitted directly into the FTZ, bypassing port delays tied to Customs release.
Companies can relabel, repackage, kitting, or inspect merchandise before duties apply, avoiding rework costs outside the zone.
Below are two common importer profiles illustrating real-world FTZ performance:
Total Estimated Annual FTZ Benefit: $300,000-$450,000
This profile aligns with many mid-market distributors and lifestyle brands.
Shipping Profile:
Duty Spend: $12M-$25M per year
Inventory Aging: 90-120 days
Estimated FTZ Savings:
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.
Shipping Profile:
Duty Spend: $3M-$8M per year
Inventory Aging: 30-60 days
Estimated FTZ Savings:
Total Estimated Annual FTZ Benefit: $700,000-$2,300,000+
This aligns with industrial manufacturers, automotive suppliers, and companies exporting complex subassemblies.
Duty deferral transforms inventory into a cash-flow engine:
The FTZ program is one of the few supply chain initiatives that drives both operational efficiency and financial performance.
✔ 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 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:
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.
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