Foreign-Trade Zone Corporation
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Weekly Entry in a Foreign-Trade Zone Offers

Reduction in Merchandise Processing Fees (MPF) and Brokerage Fees

Benefit's of FTZ's
    

Weekly Entry Savings

Under Weekly Entry procedures, the Zone User files only one Customs Entry per week, rather than filing one per shipment. Thus, U.S. Customs and Border Protection (CBP) does not process an Entry for each and every import shipment and the Zone User pays for only one entry per week. Until 2000, this benefit was available only to manufacturers in Subzones or with FTZ Board General-Purpose manufacturing authority approval. Greg Jones of the FTZ Corporation was instrumental in securing passage of legislation to permit distributors in the FTZ program to utilize Weekly Entry procedures.

Companies located outside of Foreign-Trade Zones pay a .21% Merchandise Processing Fee (MPF) for each and every formal Customs Entry (shipment). There is a minimum $25 and a maximum $485 MPF per Entry, regardless of the duty rate on the imported merchandise. The maximum MPF applies to Entries (shipments) with a value exceeding $230,952. Companies often receive many shipments exceeding this value.

FOR EXAMPLE: An importer who receives 10 shipments per week, each with a value exceeding $230,952, pays an MPF of $4,850 ($485 x 10) per week. If this number is annualized, the MPF the importer pays is $252,200(52 x $4,850) per year. The same importer using the FTZ Weekly Entry procedure would pay $485 per week as shipments leave its FTZ facility, resulting in weekly saving of $4,365 and annual saving of $226,980.

The FTZ Corporation understands that the implementation of compliant Weekly Entry procedures requires an in-depth knowledge of the FTZ Board’s regulations, CBP’s regulations and any other government agencies’ requirements that may apply to a company’s merchandise and operations. It also requires integration of procedures to track the Weekly Entry activity at key points through an FTZ inventory control system, produce the necessary reports, Customs forms (e-214, 3461, 7501, etc.), and transfer electronic data to CBP and the Census Bureau.

Weekly Entry procedures in U.S. Foreign-Trade Zones further enable companies to remain competitive from U.S. locations, where they can utilize benefits not available to companies in free trade zone environments abroad.

    

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