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