FTZ AND BONDED WAREHOUSE
FTZ AND BONDED WAREHOUSE
Charter Brokerage facilitates the prompt and efficient clearance of imported and exported goods.
Charter facilitates the prompt and efficient clearance of imported and exported goods into and out of foreign-trade zone and bonded warehouses. In fact, Charter is the premiere provider of customs services in support of foreign-trade zone (FTZ) and bonded-warehouse terminal operations for the supply of “foreign status” jet fuel to domestic and international carriers in the U.S. Our turnkey services include application, activation, documentation, inventory tracking, record keeping, reporting and audit support.
With more than 30 years of experience, Charter works with its clients to operate their own FTZ or bonded warehouse. We also represent our clients with independent 3rd party FTZ operators and bonded-warehouse proprietors, to understand their business operations. We then determine the best approach to operational procedures and identify the necessary filings to meet U.S. Customs requirements. Charter also facilitates the prompt and efficient clearance of goods into and withdrawn from foreign-trade zones and bonded warehouse terminals.
FTZ AND BONDED WAREHOUSE
Services we offer:
- Cost-benefit assessment to determine if the FTZ or bonded warehouse program is the right program for you and your operations
- Prepare applications for FTZ and/or bonded warehouse designation
- Prepare production notification applications for FTZ manufacturing
- Supply chain planning to optimize FTZ and/or bonded warehouse benefits
- Planning to optimize the use of FTZs, bonded warehouse and drawback
- Outsourcing FTZ administration and bonded warehouse
- Preparation of FTZ and bonded warehouse manuals, KPIs, and systems integration
- Training on FTZ and/or bonded warehouse operations
- Activation of FTZ and/or bonded warehouse with U.S. Customs and Border Protection
- Compliance reviews for zone and/or bonded warehouse operations
FTZ and Jet-Fuel Services
Under federal law, jet fuel in “foreign status” is exempt from duties and from state and local sales and excise taxation. “Foreign status” jet fuel refers to jet fuel that is either: (1) imported under customs bond without the payment of duty for use on aircraft engaged in international or other qualified flights; or (2) jet fuel produced in a domestic petroleum refinery that has been designated as a foreign-trade zone that is moved under bond for use on aircraft engaged in international or other qualified flights. Foreign-status fuel is routinely stored in foreign-trade zones or bonded warehouse terminals until withdrawn for use on qualified flights. We facilitate the admission and movement of foreign-status and bonded petroleum and petrochemical products in the U.S. and its territories and possessions.
Charter maintains a proprietary Fuel Inventory Tracking System (FITS) that enables it to collect, maintain and process data related to the receipt, storage and use of foreign-status jet fuel as well as generate the records and reports needed for customs compliance. Charter’s clients consist of major U.S. and foreign airlines, major U.S. petroleum companies that supply jet fuel, and airport consortia, which are owned by the airlines and operate jet-fuel storage and delivery facilities at and adjacent to major airports.
FTZ AND BONDED WAREHOUSE
Maximize your benefits
Achieving customs duty and tax savings using the FTZ or bonded warehouse programs can be complex. It requires a thorough understanding of a company’s customs duty, associated tax profile, and how the program rules will apply. Additionally, optimizing a company’s customs duty and tax position often involves utilizing a combination of programs, such as FTZ and drawback, each with its own set of requirements. Some rules are specific to commodities such as petroleum, alcohol, and tobacco. Some of the rules depend on the product’s origin and the type of duty being assessed, like antidumping and countervailing duties, duties assessed under Section 301 of the Trade Act of 1974 or Section 232 of the Trade Expansion Act of 1962 or other restrictive duties imposed by the U.S. The impact of these programs on state and local taxes, as well as requirements to achieve tax savings, can vary by location.
Charter has the experience to help you navigate the rule sets and plan your operations to achieve the best savings available. With the planning in place, Charter is your one-stop shop to help you execute the plan and realize results. We can guide you as your company proceeds with the plan or can provide a turnkey solution with Charter resources to handle ongoing operations.
If FTZ or bonded warehouse use might benefit your company, contact Charter to arrange for a detailed feasibility assessment and tailored recommendations to your specific facts and operations.
