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How an FTZ Can Cut Tariff Costs in 2025

Learn how Foreign Trade Zones (FTZs) reduce tariff costs in 2025. Discover how they delay, lower, or eliminate duties on imported goods.

Published on May 20, 2025

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As businesses across the U.S. face the return of steep import tariffs in 2025, many are looking for smarter ways to reduce costs without disrupting their supply chain. One solution gaining renewed attention? The Foreign Trade Zone (FTZ).

Here’s how FTZs help businesses reduce or eliminate duties — and why they’re a critical part of logistics strategy this year.

What Is a Foreign Trade Zone?

A Foreign Trade Zone (FTZ) is a designated area within the United States where imported goods can be stored, repackaged, assembled, or manufactured without immediately triggering U.S. customs duties. Companies only pay duties when the goods officially enter U.S. commerce — and may avoid paying them altogether if the goods are exported.

Want a full breakdown of how Foreign Trade Zones work? Read our complete FTZ guide here.

Why FTZ Matters More in 2025

With new tariffs affecting imports from countries like China, Mexico, and Vietnam, importers are feeling the squeeze. Here’s a breakdown of the 2025 tariff changes and how they’re impacting logistics.

How FTZs Reduce Tariff Costs

Here’s how businesses are using FTZs to cut costs this year:

1. Delay Paying Duties

You don’t pay duties when goods arrive — only when they enter the U.S. market. That frees up cash flow and reduces cost pressure.

2. Pay Duties on Finished Goods Instead of Parts

If you assemble or manufacture inside the FTZ, you may pay duties on the finished item — which could have a lower rate than individual components.

3. Avoid Duties Entirely on Exported Goods

Goods imported into an FTZ and later exported out of the U.S. are not subject to U.S. duties. This is especially useful for brands with international customers.

Industries That Benefit Most from FTZ in 2025

    Consumer Electronics – Delay duties while assembling U.S.-bound products

    Fitness Equipment – Store imported parts and reduce duties on finished units

    Automotive Parts – Avoid paying multiple duties across global supply chains

    Fashion & Apparel – Store seasonal goods and defer import taxes until needed

How 3PL Center Supports FTZ Operations

At 3PL Center, we help customers leverage FTZ strategies to reduce costs while maintaining fast, reliable fulfillment.

FTZ-Ready Location

Our facility in Robbinsville, New Jersey is located within a Foreign Trade Zone area. If you’re exploring FTZ logistics, talk to us about upcoming capabilities.

WMS With Real-Time Visibility

Our Warehouse Management System (WMS) tracks inventory inside and outside FTZ zones with full transparency.

Customs Coordination

We work with your customs brokers to streamline classification, deferral, and documentation.

Export and Import Fulfillment

Whether you’re selling domestically or globally, we manage the full inbound and outbound logistics process.

FTZ + Reshoring and Nearshoring: A Smart Combo

Many companies using FTZs are also shifting production through reshoring or nearshoring — bringing manufacturing closer to U.S. markets.

Looking to Cut Fulfillment Costs?

Foreign Trade Zones can offer serious savings — but they’re just one part of a bigger logistics strategy. If you're looking to reduce costs, improve shipping times, or rethink how you store and move inventory, the right 3PL can make all the difference.

Contact 3PL Center today to get a quote for all your fulfillment needs.

How FTZs Help With Tariffs FAQs