PortMiami's Foreign Trade Zone 281 Reduces U.S. Customs Duties

Foreign-Trade Zone No. 281 (FTZ 281) adds to the many benefits offered by PortMiami by furnishing international shippers with opportunities to reduce, defer and even entirely eliminate U.S. Customs duties associated with import-export activity.

FTZs are secure areas under U.S. Customs and Border Protection (CBP) supervision, considered outside CBP territory once activated. This means while goods are in the zone, they are not subject to U.S. duties or excise taxes.

• Duties are only due upon entry for U.S. consumption
• Defer the payment of duties while merchandise is stored in your site
• Reduce duties on merchandise assembled or manufactured into finished products
• Re-export goods duty-free
• Unlimited storage period
• Goods may me manufactured, cleaned, destroyed, sorted and/or assembled

There are three phases to the application process for becoming an FTZ Operator:

• Phase 1: Application with PortMiami
• Phase 2: Approval from the Foreign Trade Zone Board (FTZB) and FTZ Site Operator Agreement
• Phase 3: Activation from Customs and Border Protection and Grantee Approval

The FTZB must authorize Usage-Driven Sites, Subzones, and new Magnet Site. An Operator at an existing Magnet Site does not need approval from the FTZB, but must still apply with the Port and Activate with CBP and the Grantee. To apply to be an Operator at an existing Magnet Site, complete Phases I and III. To apply for a Usage-Driven Site or Subzone, Operators must complete Phases I, II and III.

Application Fees:

FTZ 281 operates as a utility, guaranteeing customers affordable rates for zone services and privileges.

Fast, easy, low-cost application:

• Application fee: $2,500

Annual Fees applicable upon site designation:

• Non-active site fee: $2,500
• Active site fee: $6,500

How does a Foreign Trade Zone work?

FTZs are secured areas under CBP supervision that are considered outside CBP territory upon activation. It means that while in the zone, merchandise is not subject to U.S. duty and excise tax.

It offers many advantages for users/operators:

• Duties are only due upon entry for U.S. consumption
• Defer the payment of duties while merchandise is stored in your site
• Reduce duties on merchandise assembled or manufactured into finished products
• Re-export goods duty-free
• Unlimited storage period
• Goods may be manufactured, cleaned, destroyed, and/or assembled

Benefits of becoming an FTZ

• Improve cash flow and global competitiveness
• Expand your business, create jobs and attract investments
• Reduce Merchandise Processing Fees by submitting customs entries on a weekly basis
• Speed customs clearance and eliminate paperwork
• Benefit from less regulation and more flexibility than a bonded warehouse
• Consolidate your cargo into larger shipping units thanks to duty deferral

What are the differences between an FTZ and a bonded warehouse?

In Miami-Dade County, there are a few hundred bonded warehouses. View a table that outlines the differences between a Foreign Trade Zone and a bonded warehouse.

Differences between an FTZ and a bonded warehouse

In Miami-Dade County, there are a few hundred bonded warehouses.

Need help?

PortMiami has a staff dedicated to assisting with the Foreign Trade Zone application process. For more information or to make an appointment, please call 305-347-4947 or email Sonless.Martin@miamidade.gov.