Those Affected Companies May Avoid The 45% Tariff On Imports By Using A Bonded Warehouse or A Foreign Trade Zone.
For example, importers bring merchandise into the U.S. that is not intended for U.S. consumption, but rather for exportation and consumption overseas; can take advantage of either a Bonded Warehouse or FTZ to bypass the 45% duties.
A Bonded Warehouse “is a customs regulated warehouse which must comply with strict Custom and Border Protection requirements.” According to the CPB, any merchandise that is stored in the Bonded Warehouse “is under the joint custody and joint supervision of both CBP and the Bonded Warehouse proprietor.”
A Foreign Trade Zone (FTZ) is a secure area that is under CBP supervision, but is not considered within customs territory. The CPB explains that FTZs are “located in or near CBP ports of entry,” and are the American version of what are known in the rest of the world as free trade zones. Both domestic and foreign goods may be placed in an FTZ.
With an ability to curtail the possible 45% import tax by opting for either a Bonded Warehouse or an FTZ, the time to apply is now.
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