Jonathan Todd, Vice Chair, and Robert Naumoff, Of Counsel in our Transportation & Logistics Practice Group, co-authored an article titled Tariff Mitigation Toolbox — Using Bonded Warehouses and FTZs, published in the Columbus Business Journal.
This article discusses strategies for U.S. importers facing increased customs duties amid a changing trade landscape. It highlights bonded warehouses and foreign trade zones (FTZs) as tools to help manage duty payments, cash flows, and costs. The key distinction between the two is that bonded warehouses are within U.S. customs territory while FTZs are legally outside of it. The choice between them depends on business needs, with FTZs allowing for manufacturing without duty payments but requiring more regulation. The article also touches on regulatory requirements for setting up and using these facilities.
Read the full article here: Tariff mitigation toolbox — Using bonded warehouse and FTZs - Columbus Business First