Duty Deferral
Duty isn't owed while merchandise sits in the zone — only when it's withdrawn into US commerce. That keeps cash in your business longer.
Fits: Distributors holding seasonal or high-duty inventory before it's actually needed.
BorderFlow operates inside Foreign-Trade Zone No. 94 on the Laredo corridor. Inventory sits duty-deferred until it actually enters US commerce, pays no US duty at all if it goes back out, and moves under one weekly entry instead of one filing per shipment. No five-year clock like a bonded warehouse.
Both hold inventory duty-free until withdrawal. Only one of them lets you manufacture, avoid a five-year clock, and cut your Merchandise Processing Fee to once a week.
Every FTZ benefit comes down to one of these three mechanisms.
Duty isn't owed while merchandise sits in the zone — only when it's withdrawn into US commerce. That keeps cash in your business longer.
Fits: Distributors holding seasonal or high-duty inventory before it's actually needed.
Merchandise that leaves the zone for export — or becomes scrap or waste inside it — is never subject to US duty at all.
Fits: Importers who bring goods in and ultimately ship a portion back out, including to Mexico.
If a finished product carries a lower duty rate than the imported components used to make it, FTZ Board production authority lets you pay the lower rate.
Fits: Manufacturers and assemblers facing a structural duty penalty on their own inputs.
Everything below runs as one program inside FTZ No. 94, tied to the same system as your customs and freight operation.
Merchandise is admitted with the right duty status elected upfront — Privileged or Non-Privileged Foreign — so nothing is locked in by default.
One consumption entry covers every removal from the zone that week, under 19 CFR 146.63 — not a filing per shipment.
A zone-compliant inventory system tracks every lot from admission to removal — the recordkeeping CBP expects from any zone operator.
We secure FTZ Board approval for manufacturing, assembly, or repackaging activity where it's worth pursuing for your goods.
Privileged Foreign locks the rate at admission; Non-Privileged Foreign takes the rate at time of transfer out. We choose whichever protects you per lot.
Zone records are maintained continuously and defended directly if CBP reviews the operation.
A zone shows up differently depending on your seat.
Duty isn't paid until goods actually leave the zone for US commerce — inventory sitting in the zone doesn't tie up capital in duty.
Product that ultimately ships to Mexico or another country from the zone was never dutied in the first place.
Electing Privileged Foreign status locks in today's rate on a component before a rate hike takes effect.
One weekly entry caps the Merchandise Processing Fee once, instead of once per shipment, all year.
If your inputs carry a higher duty rate than your finished product, that's a structural cost a zone can remove.
Unlike a bonded warehouse, inventory doesn't have to move or get dutied just because time ran out.
Admission, status election, storage or production, weekly filing, and removal — carried by one operator inside the zone.
Merchandise is admitted to the zone under CBP Form 214, with the right duty status elected upfront.
Privileged Foreign locks the duty rate at admission; Non-Privileged Foreign takes the rate at time of transfer out — we pick whichever protects you.
Inventory sits duty-deferred, or gets manufactured, assembled, or repackaged under FTZ Board production authority.
One consumption entry covers everything that left the zone that week, under 19 CFR 146.63.
Goods enter US commerce dutied at the elected rate, or leave the country with no US duty at all.
BorderFlow admitted the inventory into FTZ No. 94, elected status per lot, and filed weekly entries — replacing dozens of individual filings with one entry a week.
Most importers have to find a zone operator and integrate with their systems. We're already inside FTZ No. 94, on the same system as your freight and customs program.
Not a referral to a zone elsewhere — your inventory sits on the same corridor as the rest of your program.
Zone inventory lives in the same record as your trucking and customs data, not a separate zone operator's portal.
When zone inventory moves back across into Mexico, our own team is handling that crossing too.
Zone inventory control runs inside the same system you already use for shipments and customs — nothing new to learn.
Get a real rate in minutes, or tell us about your operation and we'll show you how BorderFlow fits in. No rip-and-replace required.
Takes about 2 minutes. We'll get back to you same day.
No spam. A real response within one business day.