The Foreign Trade Zone Process

The flow

When goods are imported into the US, it is a multi layered supply chain at work. The goods are manufactured by a contract manufacturer at a plant overseas, gets sent to a local port, the processing of which is handled by a local freight forwarder, then placed on a ocean or air carrier, who takes possession of the cargo at that time; upon arrival, another freight forwarder takes control, processes the paperwork to get the goods admitted into the country or in this case the foreign trade zone; upon clearance, the forwarder forwards the goods by rail or truck the ultimate destination.

Different destinations, different supply chains

Depending on the product, the goods may be destined for a retailer,a wholesale distributor or possibly a packaging vendor, depending on the product. Often these are retail goods that ultimately the American consumer finds at a local store.

The value added operation that takes place at the foreign trade zone, in order to be eligible for duty deferral or exemption has to go through an extensive set of activities before the benefit is granted. The FTZsoft product facilitates this process through the streamlined review of shipping documents related to the receipts, the preparation of various filing requirements, and the actual filing of a 214 with the Customs, processing any withdrawls that take place out of the zone, inventory reconciliation and various types of reports that need to be generated.