If your business imports goods from foreign countries, it might be worth speaking with a third party logistics company to learn more about Foreign Trade Zone access and what a 3PL can offer your business in an FTZ. US Customs and Border Protection (CBP), defines FTXs as secure locations under agency supervision and are usually considered to be out of CBP jurisdiction after activation. They can be found near CBP ports or entry points and are the United States' equivalent to free trade zones.
Foreign Trade Zones (FTZ) are available to facilitate imports into the country. Until the products reach their destination in the United States, no duty is charged. FTZs can store products for longer periods. If they are not needed, you can return them with no duties. Trudy Huguet, senior director of FTZ Product at GEODIS Americas, stated that the FTZ program was a U.S. government initiative focused on compliance. The program was designed to cover all aspects of the supply chain, she stated.
Huguet noted that, while foreign trade services can be valuable, 3PLs could also help with compliance or efficiency. A 3PL may have greater access to operational systems and data flow for many systems required to manage an FTZ. This is in addition to systems that are connected to foreign-trade zone systems. A 3PL may be able to service certain shared costs such as warehouses or other facilities.
She says that 3PLs are mainly driven by consumer desires such as square footage and personalization. To manage the FTZ, they will need services, personnel and team members. The US trade data shows that it is crucial to manage a company's needs during peak holiday season or before. While firms may have used to manage their zones in the past it meant that competence needed to be in-house. Cross-training was required for this reason. Huguet claims that contracting with a 3PL will eliminate the "risks associated with these programs."
Huguet claims that the U.S.a U.S.FTZ sister scheme is the global free trade area. Huguet claims that our work is unique and that we have strong compliance with all industries, producers, distributors, and manufacturers. If they import to the United States, they can benefit from this scheme. Huguet explains that there are three steps to participate in an FTZ. First, consult the FTZ board to obtain the designation. After activation, security and construction of the operational section of the FTZ parallel to in-house system,
Paul Killea, GEODIS' senior vice president for Freight Services Compliance Security in the Americas, is Paul Killea. He is responsible for import and export compliance in the United States and Canada. According to Killea compliance refers to ensuring all services are provided in compliance with all applicable regulations, both domestic and international. It is our responsibility to ensure that the appropriate processes are in place and that the tools and information necessary to audit and report on them are available to the public, including the government and customers.
They are also able to assist with government trade problems, such as China.
According to US import data, many corporations have had problems due to the COVID-19 pandemic and port congestion. Access to FTZs is possible for 3PLs who can assist with storage and warehousing.
