| Formal Customs Entry |
A bonded warehouse is
within U.S. Customs territory. Thus, Customs entry must be
filed before goods enter a warehouse. |
A Foreign Trade Zone is
not considered within U.S. Customs territory. Thus,
customs entry is filed just prior to removal of goods from the
Zone and only for amount of goods to be removed. |
| Customs Bond |
Required for all
warehouse entries. |
No bond required!
All admissions to a Zone are covered under FTZ operators Customs
Bond. No additional bond is required. |
| Payment of Duty |
Merchandise is dutiable
at the rate in effect at time of withdrawal. |
Duties are due only upon
entry for U.S. consumption. The rate can be that which is
in effect at time of admission or withdrawal. |
| State & Local
Inventory Tax |
Tax is levied on January
1st of each year on all merchandise. |
Foreign merchandise is
not taxed. Domestic merchandise to be exported is not
taxed. |
| Permitted Activity |
Merchandise may only be
cleaned, repackaged & sorted under Customs supervision. |
Merchandise may be
stored, inspected, repackaged, repaired, tested, cleaned,
sampled, displayed, manipulated, mixed, processed, assembled,
salvaged, destroyed, or re-exported. |
| Waste & Damaged
Goods |
Duty owed on entire
shipment entering a bonded warehouse. |
No duty paid on waste,
damaged or otherwise non-usable merchandise that is destroyed in
the Zone. |
| Goods with
Documentation Labeling Defects |
May not be admitted. |
May be admitted and
problems corrected. |
| Domestic Merchandise |
May not be admitted. |
May be admitted without
Customs Permit and co-mingled with foreign merchandise. |
| Drawback of Customs
Duties or Federal Excise Tax |
Does not apply. |
May apply to goods
admitted to the Zone if approved by Customs. |
| Storage Period |
Not to exceed five
years. |
Unlimited |
