To take advantage of an FTZ, companies need to be able to track their inventory, trace manufacturing and production orders, determine whether material came from domestic or international sources, and classify goods for duty deferrals and reductions. How much a company saves by using an FTZ depends on the size of the company and its business model. Reducing merchandise processing fees alone can save a company a substantial amount of money.

It’s easy to see why so many international shippers are turning to Foreign Trade Zones to shave costs off their supply chain. Florida boasts more than 20 FTZs, including many in Miami. But what’s the alternative? Obviously, not everyone uses Foreign Trade Zones for their distribution needs. Shippers must weigh the pros and cons of operating within these semi-independent zones, and in some cases they might find that it’s easier to stick with traditional, bonded warehouses.