Five Reasons Foreign Trade Zones (FTZ) Are a Strategic Advantage in 2025

As tariff uncertainty continues to ripple through global supply chains, organizations are turning to powerful—but often underutilized—tools to maintain agility and protect margins. One of the most effective options? Foreign Trade Zones.

Designated by U.S. Customs and Border Protection (CBP), FTZs offer U.S.-based importers and manufacturers the ability to reduce costs, simplify compliance, and create operational resilience. Here are five key reasons FTZs are emerging as a cornerstone of strategic trade management in 2025:

With the ongoing shifts in global trade policy, tariffs can spike with little warning. FTZs allow companies to defer, reduce, or even eliminate customs duties—especially valuable when duties on raw materials are higher than those on finished goods. This inverted tariff relief can directly impact your bottom line.

In a FTZ, duties are only paid when goods leave the zone and enter U.S. commerce. This means your organization can free up working capital that would otherwise be tied up in customs payments. For goods that are re-exported, duties are avoided altogether—unlocking even greater savings.

FTZs offer far more than duty savings—they enhance supply chain control. With centralized inventory management, streamlined processing, and the ability to assemble, store, or repackage goods under customs supervision, businesses gain flexibility and efficiency.

Operating within a FTZ helps reduce the volume and complexity of customs filings. Instead of submitting multiple entries and payments, businesses can consolidate reporting, minimizing administrative burden and the risk of costly errors or delays.

Beyond short-term savings, FTZs provide strategic insulation from global trade disruptions. As policy landscapes evolve, organizations leveraging FTZs are better positioned to remain compliant, competitive, and responsive—no matter how the tariff landscape shifts.

Foreign Trade Zones represent a smart, scalable way to take back control in an unpredictable trade environment. With the right technology and compliance strategy in place, businesses can harness the full financial and operational benefits FTZs have to offer.

Descartes FTZ Software, designed with importers, manufacturers, and 3PLs in mind, automates key FTZ processes, including electronic filings, Harmonized Tariff Schedule (HTS) classification, and denied party screening. It enables centralized inventory tracking, accurate tariff calculations, and multi-client servicing from a single platform. With integrated compliance tools and real-time data access, businesses can confidently manage FTZs, optimize duty deferral and inversion, and maintain full regulatory compliance, unlocking the full strategic and financial benefits of FTZ participation. 

For more information on the strategies being used by industry leaders around the world to mitigate the impact of tariffs on their business, you can download our White Paper: What Companies are Doing to Tackle Escalating Global Supply Chain Challenges.