| |
FTZ |
Bonded Warehouse |
TIB |
Drawback |
| Duty |
Duty is paid when merchandise exits the FTZ for US consumption. May elect to pay duty at this rate of the component or that of the finished product |
Duty is collected only when merchandise is withdrawn for consumption |
Entered duty free. Importer must export or destroy merchandise within one year of import (extentions can be requested) |
Duty paid when merchandise enters the US. Must then file for a rebate, and can reclaim 99% of duty paid related to subsequent export or destruction. Refunds can take years to be received. |
| Time Limits |
Unlimited storage time |
Five year storage limit |
One year time limit |
Must apply for drawback within three years of Exportation or Destruction |
| Inverted Tariff |
Inverted tariff benefit possible for manufacturers |
No inverted tariff |
No inverted tariff |
No inverted tariff |
| Entry into US Commerce |
Yes, all zone status goods can be entered from a zone into the US Commerce except Zone Restricted Merchandise |
No, must export manufactured products |
No, goods must be exported or destroyed |
Can be entered, but, must be exported or destroyed within five years of importation to receive duty refund. |
| Foreign/Domestic Storage |
Possible to store domestic & foreign goods in same facility |
No domestic goods can be stored |
Not applicable |
May receive refunds for imported goods purchased from a domestic supplier. |
| Movement of Merchandise |
Merchandise can move within the US Customs territory as well as be exported at potentially reduced duty rates |
Certain transfers are permissible between bonded warehouses and FTZ's subject to restriction. |
Merchandise can move within the US Customs territory |
Not applicable |
| Arrival in US |
Once goods reach a US port they can be shipped directly to the FTZ under transportation bond |
Once goods reach a US port they can be shipped directly to the warehouse under transportation bond |
Once goods reach a US port, they can move freely within the one year time limit |
Not applicable |
| Bond Requirement |
Yes, bond required on dutiable value of goods stored in facility |
Yes, bond required for each entry in addition to the property bond. |
Yes, bond is twice the entered value of most products or 110% for limited products |
Yes, a bond is required to file Drawback |
| Property Tax Benefits |
19 USC 81o (e) prempts states and localities from collecting ad valorem taxes on imported tangible personal property held in a FTZ and all property held in a zone for export |
Tangible Personal Property Held for Export is exempt |
Not applicable |
Not applicable |
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