Global trade has entered one of the most unpredictable periods in decades. Tariffs remain at or near historic highs; the de minimis exemption has ended, and regulatory requirements continue to intensify. At the same time, geopolitical forces, supply-chain disruptions, and cost pressures are reshaping how goods move, how companies manage exposure, and how trade compliance is governed.

For importers, manufacturers, and logistics providers, these shifts have elevated trade compliance from a tactical function to a strategic imperative. Foreign Trade Zones (FTZs)—once used primarily by major manufacturers—have now become essential tools for managing volatility, controlling landed cost, and maintaining competitiveness, especially when paired with modern automation technology.

This blog explores why FTZ software has become indispensable for ensuring compliance, safeguarding profitability, and creating operational resilience in today’s high-stakes trade environment.

Key Takeaways

  • Global trade volatility is reshaping compliance strategies.
  • FTZs provide measurable financial and operational benefits that directly impact competitiveness.
  • Automation is non-negotiable. Modern FTZ software ensures accuracy, transparency, and audit readiness while driving efficiency.
  • Compliance expertise matters. Partnering with a trusted provider like Descartes helps organizations meet U.S. Customs and Border Protection (CBP) standards with confidence.
  • The ROI is tangible and fast. Weekly entry savings, duty deferrals, and labor reductions deliver payback within months—not years.
  • FTZs are no longer niche. From ecommerce to manufacturing, they’ve become essential tools for managing risk and protecting profitability.

A New Era for Global Trade Professionals

Tariffs are not simply high—they’re volatile and evolving. For example, in 2025 the U.S. increased tariffs on steel and aluminum imports to 50 % under Section 232, raising the stakes for global supply-chains. (The White House) Meanwhile, imports into the U.S. surged in early 2025 as companies accelerated purchases ahead of higher duties—according to the Peterson Institute for International Economics (PIIE), January–March imports were up roughly 25 % over the same period in 2024. (PIIE)[AB1] 

At the same time, adoption of FTZs is experiencing a surge: trade-industry research indicates “unprecedented interest” for U.S. FTZ programs in 2025. (gtreview.com) For importers facing compressed margins, complex duty regimes, and intense regulatory scrutiny, this environment has transformed global trade management from a back-office function into a strategic priority.

Against this backdrop, FTZs have become indispensable. Once considered the domain of large multi-nationals, they now offer competitive advantages to businesses of all sizes—when combined with modern automation technologies.

To support compliance leaders navigating this transformation, Descartes has released The FTZ Software Buyer’s Guide: Navigating Tariff Volatility, Rising Demand, and Modern Compliance—a comprehensive resource designed to help organizations assess needs, evaluate solutions, and select the right technology partner.

From Niche Tool to Competitive Advantage

An FTZ is a designated location within U.S. territory but considered outside U.S. customs territory for duty purposes. Goods may be imported into an FTZ and duties deferred until they enter U.S. commerce—or if re-exported, duties may not be paid at all.

Key financial and operational benefits include:

  • Duty deferral or elimination, improving cash flow and reducing landed cost
  • Weekly entry filing, dramatically reducing Merchandise Processing Fees (MPF)
  • Tariff inversion, allowing importers to pay duties at the lower rate of the finished product rather than its components
  • Reduced inspection frequency and streamlined logistics, improving throughput and reducing risk

These advantages have made FTZs a cornerstone of modern trade strategy. Yet with growing adoption comes increased compliance complexity. Meeting U.S. Customs and Border Protection (CBP) requirements demands precision, documentation, and real-time visibility—standards that manual processes, spreadsheets or legacy systems can no longer meet.

Why FTZ Software Is Essential for Compliance and ROI

Participation in an FTZ program offers significant financial savings—but only if compliance remains airtight. The Descartes Buyer’s Guide makes clear that automation is now the only sustainable path for managing the intricate web of CBP obligations.

Modern FTZ software automates:

  • Admissions and entries (e214, CBP Form 3461, CBP Form 7501)
  • Inventory Control and Recordkeeping (ICR) with real-time visibility
  • Consolidation of weekly entries for maximized MPF savings
  • Exception management and audit reporting for CBP readiness

Integrated systems connect seamlessly with enterprise platforms — including Enterprise Resource Planning (ERP), Warehouse Management System (WMS) and Transportation Management System (TMS) — reducing human error, ensuring consistent data, and supporting a unified view across business units.

In short: automation transforms FTZ management from a compliance burden into a strategic advantage—enhancing accuracy, speed, and financial performance simultaneously.

Building the Business Case: Investment with Tangible Returns

The Buyer’s Guide encourages companies to view FTZ technology not as an operating expense, but as an investment in compliance, resilience and long-term profitability.

Key ROI drivers include:

  • MPF savings derived from weekly entry consolidation—often exceeding US $1 million annually for high-volume importers
  • Improved cash-flow via deferred duty payments
  • Labor savings achieved through automated filing and reconciliation
  • Penalty avoidance through proactive, audit-ready compliance

While software costs depend on program scope and integration complexity, many organizations see measurable returns within the first year of deployment. The guide further highlights total cost of ownership (TCO) factors—such as training, integration and ongoing support—to enable accurate vendor comparisons.

Selecting the Right Vendor Partner

Choosing the right FTZ software is only half the equation—selecting the right vendor partner is equally critical.

Descartes recommends assessing providers across six key dimensions:

  1. Regulatory Expertise – Deep understanding of CBP and FTZ compliance requirements
  2. Industry Experience – Proven success across sectors such as ecommerce, aerospace, manufacturing and logistics
  3. Scalability – Ability to expand seamlessly across zones, clients and geographies
  4. Integration Capabilities – Reliable connectivity with ERP, WMS and TMS platforms
  5. Support and Training – 24/7 access to FTZ specialists, not just general IT help-desk
  6. Continuous Innovation – Regular updates that keep pace with regulatory change and evolving trade landscapes

Buyers should also probe vendor performance on structured questions: system uptime, audit traceability, training resources and innovation roadmap. A robust vendor relationship extends well beyond implementation—it’s a partnership safeguarding compliance and enabling growth.

Descartes: Proven Leadership in FTZ Management

As the Buyer’s Guide details, Descartes brings decades of trade-compliance expertise and global scale to FTZ operations. Its cloud-native, Service Organization Control 2 (SOC 2) -compliant platform provides a unified environment for admissions, entries, inventory and reporting—built specifically for the complexities of high-volume FTZ operations.

Descartes FTZ solution highlights:

  • Fully cloud-based platform with no installation required
  • Automated filings with built-in compliance logic and Automated Commercial Environment (ACE) connectivity
  • Integrated product master for enriched shipment data (Harmonized Tariff Schedule—HTS, Country of Origin—CoO, cost)
  • Multi-zone, multi-client management within one environment
  • Audit-ready dashboards and one-click CBP reporting
  • 24/7 global support from trained FTZ specialists

With continuous investment in innovation and a dedicated global-trade content team ensuring data accuracy and currency, Descartes provides an FTZ platform that is both future-ready and compliance-proven.

Best Practices for Long-Term FTZ Success

The Buyer’s Guide concludes with actionable steps to ensure sustainable FTZ performance:

  • Quantify ROI to demonstrate ongoing financial impact
  • Integrate systems to eliminate silos and manual re-entry
  • Train teams across departments to foster shared compliance responsibility
  • Conduct internal audits regularly for proactive risk-management
  • Monitor regulatory updates actively to adapt quickly to change
  • Partner with experts who understand both trade technology and CBP regulations

These best practices help organizations maintain compliance maturity while continuing to capture the financial and operational gains that FTZs provide.

Why FTZ Adoption Is Accelerating

The trade environment has fundamentally changed. The de minimis exemption is gone, tariff regimes are evolving, and import-economics have shifted dramatically. For example, tariff measures introduced in 2025 caused importers to accelerate purchases ahead of duty hikes—according to industry coverage, FTZ interest in the U.S. is now “unprecedented.” (gtreview.com)

By integrating compliance, inventory management and reporting into one digital framework, FTZ software enables businesses to adapt, manage risk confidently, and scale strategically.

Chart Your Path to FTZ Success

In today’s unpredictable trade environment, compliance is not just a necessity—it’s a strategy. Organizations that embrace automation will not only navigate tariff volatility—they’ll emerge stronger, more agile and better positioned for growth.

 Download the Descartes FTZ Software Buyer’s Guide to access detailed frameworks, vendor evaluation criteria and actionable best practices for optimizing your FTZ operations.