Executive Summary
Foreign Trade Zones provide companies with one of the strongest financial tools available in global logistics. They allow imported goods to move into a secured zone without immediate duty payments, giving organizations the ability to reduce costs, improve cash flow, and gain a competitive advantage. JASCI WMS eliminates FTZ complexity by automating the entire workflow—from ASN capture to bonded validation to automatic reslotting—protecting companies from customs risk while delivering measurable financial benefits.
Understanding Foreign Trade Zones
Global supply chains are more competitive than ever. Companies are searching for ways to improve margins, reduce cost of goods, and carry inventory more efficiently. Foreign Trade Zones play a major role in achieving these goals.
An FTZ is a secure area inside or near a United States port where companies can receive, store, and manipulate goods without paying duties at the point of arrival. Duties are only paid when goods leave the FTZ and enter the domestic market.
However, the administrative burden of maintaining compliance often prevents companies from using FTZs effectively. Traditional WMS platforms do not manage FTZ data automatically, forcing teams to rely on spreadsheets, manual reviews, and disconnected tools.
Key Advantages of FTZ Operations
Duty Deferral
Keep cash inside the business longer by deferring duties until goods enter domestic commerce.
Duty Elimination
Eliminate duties entirely on merchandise that is re-exported to international destinations.
Lower Landed Costs
Benefit from tariff inversion when finished goods have lower duty rates than raw materials.
Fewer Filings
Reduce customs filings and administrative workload with simplified documentation.
Challenges with Traditional FTZ Management
Although FTZs offer powerful financial advantages, they come with strict compliance rules. Manual processes introduce risk in several ways:
Heavy Documentation Requirements
Companies must maintain accurate admission numbers, zone statuses, and customs classification codes. Errors can lead to penalties or delays.
Slow Approval Workflows
Receiving cannot be approved unless all bonded information is validated. Without automation, this becomes a bottleneck.
Compliance Vulnerability
Mixing bonded and domestic goods or missing customs fields exposes companies to significant financial risk.
Limited Visibility
Many systems do not track FTZ data natively, forcing teams into manual tracking and spreadsheets.
How JASCI WMS Automates FTZ Processes
JASCI's automation begins the moment an ASN arrives and continues throughout the product lifecycle.
Automated FTZ Data Capture
When an ASN is received, the system captures bonded receipt status, FTZ admission number, and FTZ zone status automatically.
Compliance Validation Before Approval
If a receipt is bonded, JASCI verifies all required information is complete. Missing data stops approval and prompts users to update records.
Automatic Clearance & Reslotting
Once FTZ information is validated, JASCI reslots inventory automatically. Bonded items move to the correct zone; cleared items shift to domestic storage.
Real-Time Audit Visibility
Every movement is logged. Companies can answer customs audits instantly with complete data trails.
ERP & Compliance Integration
Webhooks update financial and customs partners in real time to ensure accurate reporting across systems.
Financial Benefits of FTZ Automation
The financial value of FTZs becomes much stronger when automation removes manual overhead.
Duty deferral improves liquidity and financial planning
Automation eliminates manual reviews and data entry
Compliance errors prevented at the source
Additional Benefits
- Duty elimination on exports — Goods shipped internationally avoid domestic duties entirely
- Lower landed costs — Tariff inversion and duty strategies reduce total cost of goods
- Faster operations — Automated clearance and reslotting increase throughput
Why JASCI's Approach Is Different
JASCI integrates FTZ tracking into the core WMS, not as an add-on. This creates significant advantages:
One System
FTZ data moves with inventory through every step—no separate compliance tools needed.
SmartTask Automation
Workflows enforce compliance and eliminate manual errors automatically.
Real-Time Updates
ERP, finance, and customs partners stay in sync with live data.
Designed for Scale
High-volume operations remain accurate and compliant at any throughput.
Key Takeaways
Frequently Asked Questions
Ready to Automate Your FTZ Operations?
See how JASCI's integrated FTZ management can reduce compliance risk while unlocking financial benefits.
