Understanding Bonded Warehouses and Foreign Trade Zones (FTZs) — And Why Northern Nevada is Strategically Positioned for Both
As supply chains grow increasingly global—and increasingly uncertain—U.S. importers and manufacturers are leaning into smarter strategies to manage duty exposure, enhance cash flow, and improve operational flexibility. Two of the most powerful tools available? Bonded Warehouses and Foreign Trade Zones (FTZs).
These are not just buzzwords. They’re real opportunities to drive efficiency and resilience in your logistics strategy—especially if you’re operating in a pro-business region like Northern Nevada.
What is a Bonded Warehouse?
A bonded warehouse is a secure facility authorized by U.S. Customs and Border Protection (CBP) where imported goods can be stored—**without paying duties or taxes—**for up to 5 years. The importer can either withdraw the goods for U.S. consumption (and pay duties at that time), or export them without ever incurring U.S. duty.
Bonded warehouses are ideal for:
Importers of high-value or seasonal goods
Businesses with long lead times or unpredictable inventory cycles
Companies wanting to defer tax liability until the point of sale
There are limitations: manipulation of the goods is generally prohibited (no manufacturing), and customs maintains tight oversight. But for many importers, the cash flow benefit alone makes this a worthwhile option.
| Feature | Foreign Trade Zone (FTZ) | Bonded Warehouse |
|---|---|---|
| Duty Payment | Deferred or reduced | Deferred only |
| Maximum Storage Time | Unlimited | 5 years |
| Manufacturing Allowed? | Yes | No |
| Customs Oversight | Less direct, operator-managed | Strict CBP supervision |
| Duty on Exports | None | None |
| Best For | Manufacturers, assemblers, 3PLs | Importers storing high-value goods |
What is a Foreign Trade Zone (FTZ)?
A Foreign Trade Zone is a designated site authorized by the federal government but managed locally—treated as outside of U.S. customs territory for tariff purposes. Companies can:
Import components or raw materials
Store, repackage, assemble, test, and even manufacture products
Only pay duties when—and if—the goods enter U.S. commerce
Potentially reduce the duty rate (if the final product carries a lower tariff than its parts)
In essence, an FTZ provides more operational freedom than a bonded warehouse, especially for manufacturers, assemblers, and 3PLs handling complex, high-volume supply chains.
Additionally, multiple bonded warehouse operators serve the Northern Nevada region, allowing companies to stage inventory near major Western U.S. markets without incurring immediate duty costs.
Final Thoughts
Whether you're managing a global supply chain or considering a domestic manufacturing footprint, understanding how bonded warehouses and FTZs work—and where they are—is crucial to staying competitive.
📍 Northern Nevada is uniquely positioned to support both strategies, with the infrastructure, workforce, and trade designations that make it a smart logistics and manufacturing hub.
If you’re curious whether your business qualifies for FTZ benefits, or want help identifying bonded warehouse or FTZ-enabled facilities in the market, let’s talk. Helping companies optimize their industrial footprint—both physically and financially—is what I do.
Sources & Further Reading
Cushman & Wakefield. Understanding Bonded Warehouses and Foreign Trade Zones
U.S. Department of Commerce – FTZ No. 126: Official FTZ 126 Info Page
Broker | Industrial Specialist
Cushman & Wakefield – Northern Nevada
NV License # BS.146113
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The views expressed in this blog are my own and do not necessarily reflect those of Cushman & Wakefield.