1301 Charleston Regional Pkwy B, Charleston, SC 29492
Customs Bonded Warehousing+ Foreign Trade Zone
Customs Bonded Warehousing
Dockside’s clients can benefit from our status as a U.S. Customs Bonded warehouse. A customs-bonded warehouse is a building or other secured area in which dutiable goods may be stored or manipulated, or may undergo manufacturing operations, without payment of duty.
Your company could enjoy several advantages by using a bonded warehouse:
- No duty is collected until merchandise is withdrawn for consumption. An importer has control over use of money until the duty is paid on withdrawal of merchandise from the bonded warehouse. If no domestic buyer is found for the imported articles, the importing company can sell merchandise for exportation, thereby canceling the importer’s obligation to pay duty.
- Many items subject to quota or other restrictions may be stored in a bonded warehouse.
- Check with the nearest U.S. Customs and Border Protection office, however, before placing such merchandise in a bonded warehouse.
- Duties owed on articles that have been manipulated are determined at the time of withdrawal from the bonded warehouse.
Foreign Trade Zone
Foreign-Trade Zones (FTZ) are secure areas under U.S. Customs and Border Protection (CBP) supervision that are generally considered outside CBP territory upon activation. Located in or near CBP ports of entry, they are the United States’ version of what are known internationally as free-trade zones.
Dockside’s status as a Foreign Trade Zone operator allows its customers to enjoy the following benefits:
- CBP duty and federal excise tax, if applicable, are paid only when the merchandise is transferred from the zone for consumption.
- While in the zone, merchandise is not subject to U.S. duty or excise tax. Certain tangible personal property is generally exempt from state and local ad valorem taxes.
- Merchandise in a zone may be assembled, exhibited, cleaned, manipulated, manufactured, mixed, processed, relabeled, repackaged, repaired, salvaged, sampled, stored, tested, displayed and destroyed.
- Manufacturing is permitted within the FTZ. Duty is payable on either the imported components or the finished product, whichever has the lower rate. There is no duty on waste material or on value added manufacturing such as labor, overhead and profit.
- The rate of duty and tax on the merchandise admitted to a zone may change as a result of operations conducted within the zone. Therefore, the zone user who plans to enter the merchandise for consumption to CBP territory may normally elect to pay either the duty rate applicable on the foreign material placed in the zone or the duty rate applicable on the finished article transferred from the zone whichever is to his advantage.
- Goods may be exported from the zone free of duty and excise tax.
- CBP security requirements provide protection against theft.
- Merchandise may remain in a zone indefinitely, whether or not subject to duty.
- Merchandise imported under bond may be admitted to a FTZ for the purpose of satisfying a legal requirement of exporting the merchandise. For instance, merchandise may be admitted into a zone to satisfy any exportation requirement of the Tariff Act of 1930, or an exportation requirement of any other Federal law (and many state laws) insofar as the agency charged with its enforcement deems it so.
Comparison of Key Features:
|Customs Entry||A bonded warehouse is within U.S. Customs territory; therefore, a Customs Entry must be filed to enter goods into the warehouse.||A zone is not considered within Customs territory. Customs entry is, therefore, not required until removed from a zone.|
|Customs Bond||Each entry must be covered by either a single entry, term bond or general term bond.||No bond is required for merchandise in a zone.|
|Payment of Duty||Duties are due prior to release from bonded warehouses.||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.|
|Manufacturing Goods||Manufacturing is prohibited.||Manufacturing is permitted with duty payable at the time the goods leave the Zone for U.S. consumption. Duty is payable on either the imported components or the finished product, whichever carries a lower rate. No duty on waste material or on value added in manufacturing, such as labor, overhead and profit. No duty paid on goods exported from a zone.|
|Permitted Activity||Only cleaning, repackaging and sorting may take place and 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 nonusable merchandise that is destroyed in the Zone.|
The Measurable Difference
At Dockside, our mandate is to deliver custom solutions to your needs in Third-Party Logistics, Warehousing & Distribution, Packaging & Preservation, Transportation, and Order Fulfillment.
We offer performance-based solutions that result in measurable improvements. Your bespoke Dockside Logistics plan will positively impact supply-time, packaging quality, risk reduction, product availability, and ultimately your bottom line.
The key to our success is constant improvement. At Dockside, we consistently deliver fresh approaches, yielding quantifiable improvement to your business, and strengthening your relationships with your clients
We can't wait to show you the Measurable Difference. What can Dockside Logistics can do for you?
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Dockside: The Measurable Difference
1301-B Charleston Regional Parkway
Charleston, SC 29492