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What Are Bonded Warehouses and Foreign Trade Zones (FTZs)?
Shipping & Logistics

What Are Bonded Warehouses and Foreign Trade Zones (FTZs)?

Menachem Chayempour
April 4, 2025
6 min read

Tariff policies are shifting fast—and bonded warehouses and Foreign Trade Zones (FTZs) are becoming must-know terms for global brands.

What Is a Bonded Warehouse?

A bonded warehouse is a secure facility where imported goods can be stored without immediately paying duties or tariffs. The key benefit? Duties are only paid when the goods are released for U.S. consumption.

If the goods are re-exported to another country, no duties are owed at all. This gives companies better control over cash flow and the flexibility to make smarter decisions on distribution and sales.

What Is a Foreign Trade Zone (FTZ)?

An FTZ (Foreign Trade Zone) is a designated area within the U.S. that is treated as outside of U.S. customs for legal and tax purposes. Companies can bring in goods, store them, and even repackage or assemble products without immediately triggering import taxes.

When those goods leave the FTZ for sale in the U.S., tariffs apply—but often at a reduced rate. If the finished product has a lower duty than the components used to make it, you only pay the lower rate. Tariffs are also waived on damaged or scrapped goods that never leave the zone.

Why Does This Matter for Your Brand?

  • Delays or eliminates tariffs on certain goods
  • Improves cash flow by deferring duties until the point of sale
  • Reduces costs on components or raw materials
  • Protects against policy volatility and shifting regulations
  • Gives flexibility on where and when to distribute products

FAQs About Bonded Warehousing and FTZs

Are bonded warehouses and FTZs the same?

No. Both defer tariff payments, but bonded warehouses are mainly for storing goods, while FTZs allow you to do additional processing, repackaging, or even light manufacturing.

Do all 3PLs offer bonded or FTZ capabilities?

Not all do. These services require special licensing and customs compliance, so it's important to find a provider with experience and infrastructure in place.

Is this only for large companies?

No—brands of all sizes can benefit, especially if they import inventory in bulk, manufacture overseas, or sell across borders.

How FulfillYN Can Help

At FulfillYN, we help e-commerce and wholesale brands find the right 3PL partners—focusing on your specific needs, including bonded warehousing and FTZ capabilities.

We pre-vet over 500+ 3PLs across North America and globally, and we’ll match you with providers that align with your business model, order volume, and shipping strategy.

Need Help Navigating Bonded or FTZ 3PLs?

Whether you’re exploring ways to reduce import fees or just trying to stay ahead of regulatory changes, FulfillYN can point you in the right direction. We’re happy to have a conversation and walk you through your options—no hard sell, just helpful insight.

📩 Reach out to our team or book a quick consult call to learn more.