Valuable savings opportunities await importers using a Foreign Trade Zone such as JAXPORT’s FTZ No. 64.
Consolidating multiple containers into one weekly outbound bill of lading through an FTZ allows importers to potentially reduce Merchandise Processing Fee (MPF) charges the administrative fee U.S. Customs & Border Protection (CBP) charges on imports. Outside of an FTZ, this fee is due immediately upon the imported cargo arriving at the U.S. port of entry, airport or seaport.
The MPF is an ad valorem fee, assessed at 0.3464 percent of the commercial value for inbound foreign cargo. “It is a cost of doing business,” said Lisa Diaz JAXPORT FTZ expert. “It simply pays U.S. Customs for processing the merchandise.”
The maximum MPF is $497.99 per entry. There is no maximum number of entries, so a high-volume importer that is not using an FTZ can end up paying up to $497.99 multiple times per week. Using an FTZ allows the importer to combine multiple outbound shipments into one single entry ñ that means the company only has to pay one fee, one time, for each outbound shipping week. This benefit not only delays the payment of the MPF fee, it also provides a significant cost savings to the company.
Diaz said FTZ No. 64 provides duty deferrals/exemptions/reductions and streamlined logistics, among other benefits.
In addition, there are three primary MPF savings opportunities available to importers switching to an FTZ: