UPS expands Foreign Trade Zone services

UPS Foreign Trade Zone

UPS has announced the integration and expansion of Zone Solutions within its customs brokerage, warehousing, logistics and transportation business. In 2017, UPS acquired Zone Solutions to strengthen its global trade portfolio and provide a range of services for companies considering a Foreign Trade Zone (FTZ) programme. UPS now offers FTZ consulting, management and fulfilment services.

UPS has converted four of its major US international air freight (IAF) gateways into FTZs: Chicago (ORD), New York (JFK), Dallas (DFW), and Los Angeles (LAX). The expansion extends UPS’s FTZ-related capabilities beyond warehousing and distribution to create an FTZ solution to help clients manage the end-to-end process from dealing with customs to inventory control. Any of UPS Global Logistics’ 42 US distribution centres can become FTZs.

According to the most recent data from the Census Bureau (2017), import duties totalled $33.1bn – equal to 1.4% of the total value of all imported goods, and 4.7% of the value of all imports subject to duty. UPS Global Customs Brokerage processes almost 25m import clearances each year in the US alone. For businesses looking to grow and expand, proper management and payment of duties is critical. Importers in industries such as consumer electronics, automotive, apparel, and footwear historically pay high duty rates when importing their products into the country.

Source: UPS

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