Descartes FTZ Solutions
Customs Brokers & Foreign Trade Zones
Foreign trade zones are critical to customs brokers since they allow goods to be imported, stored, and even processed with delayed or reduced duty payments, giving brokers more flexibility to manage costs for their clients. Descartes' FTZ software can help customs brokers manage the entire customs-controlled inventory process from one intuitive web-based interface.
Why Are Customs Brokers Turning to Foreign Trade Zone Management Amid Trade Policy Changes?
Trade policy has become one of the more unpredictable forces shaping global supply chains. From sudden tariff changes to shifting trade agreements, importers and exporters are under pressure to adapt quickly while minimizing risk and cost. In this environment, customs brokers are finding that traditional solutions aren’t enough. Increasingly, brokers are turning to Foreign Trade Zone (FTZ) management as a way to help their clients stay resilient.
The Challenge for Customs Brokers
Customs brokers serve as the critical link between businesses and government authorities, ensuring shipments clear customs smoothly and remain compliant. However, when tariffs rise unexpectedly or quotas tighten, importers face higher costs, longer delays, and more complex filing requirements. For brokers, this creates a dual challenge:
Maintaining Compliance
Ensuring compliance in the face of ongoing regulatory and trade policy changes.
Reducing Duty Exposure
Safeguarding client's financial interests by helping them avoid unnecessary duty exposure.
To meet these challenges, brokers need tools that go beyond traditional entry filings—and FTZ management with powerful technology is proving to be one of the most viable option
Why Are Foreign Trade Zones Gaining Traction?
Foreign Trade Zones provide businesses with a way to reduce exposure to tariff volatility while improving operational flexibility. For customs brokers, managing FTZs for their clients offers several strategic advantages:
Duty Deferral
FTZs allow companies to delay duty payments until goods leave the zone for U.S. commerce—or avoid them entirely if the goods are re-exported. This is especially valuable when tariffs change quickly, giving brokers a practical way to shield clients from sudden cost increases.
Inverted Tariffs
By managing FTZ programs, brokers can help clients pay lower duty rates on finished products instead of higher rates on imported components. This creates tangible savings and makes brokers indispensable partners in cost reduction.
Flexibility
FTZs allow businesses to store, assemble, or manipulate goods without immediate customs clearance. This flexibility helps clients navigate trade policy shifts without halting production or disrupting supply chains.
Value-added Services
By expanding into FTZ management, brokers can differentiate their services, offering clients not just compliance but also strategic trade solutions that enhance resilience and competitiveness.
How Does Descartes Support FTZ Management for Customs Brokers?
At Descartes, we provide the technology and connectivity that enables customs brokers to manage Foreign Trade Zones efficiently. Our FTZ management solutions help brokers:
Automate compliance
Ensures adherence to U.S. Customs and Border Protection (CBP) regulations with smart labor-saving automations.
Simplify Duty Calculations
Streamlines duty computations to help clients achieve maximum tariff savings.
Gain Visibility
Achieve insight into inventory movements within FTZs for accurate reporting.
Streamline Operations
Reduce labor and increase data accuracy with direct integration into customs and trade systems.
By partnering with Descartes, customs brokers can confidently expand into FTZ management, providing clients with the tools to weather trade policy changes and maintain a competitive edge.
Customer Success Stories
“The Descartes solution helps us maximize the operational and cost savings benefits of FTZs through automation while ensuring compliance with U.S. Customs and Border Protection (CBP) regulations."
Paul McDonald, Strategic Advisor,
Automated Logistics Systems
“Compliance was a primary factor in selecting Descartes FTZ solution, however, cost-effectiveness and the ability to opt for a Software as a Service (SaaS) version also were major considerations.”
John Sell, Vice President of Retail and Transportation Solutions, MD Logistics
Customs Brokers & Trade Policy Shifts
As trade policy shifts continue to create uncertainty, customs brokers are stepping into a more strategic role for their clients. By turning to Foreign- Trade Zone management, brokers can offer a proven way to reduce tariff risk, enhance supply chain flexibility, and deliver greater value. With the right technology partner, FTZ management becomes not just a compliance tool but a competitive advantage—for both brokers and the businesses they serve.
Developed to meet the specific needs of FTZ operators and tenants, the Descartes FTZ solution unifies import, export, logistics, compliance, and financial processes including filing with regulatory agencies (e.g. CBP), Harmonized Tariff Schedule classifications, export licensing, denied party screening, comprehensive product catalog, tracking, event management, and an international document repository. It is our domain expertise and commitment to your success that sets Descartes apart.
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