Avoiding Tariffs with Aries Worldwide Logistics: FTZ's and Bonded Warehousing Explained
In today’s complex global trade environment, tariffs can significantly impact your bottom line. At Aries Worldwide Logistics, we understand the challenges businesses face and offer innovative solutions to minimize costs while keeping your supply chain moving seamlessly. With our expertise in International, North American, Customs & Trade Services, and Warehouse Logistics, we empower clients to navigate tariff hurdles using Foreign Trade Zones (FTZs) and bonded warehousing. Here’s how partnering with Aries can help you avoid tariffs and optimize your operations.
The Tariff Challenge
Tariffs—taxes imposed on imported goods—can strain cash flow, increase costs, and complicate logistics planning. Whether you’re importing raw materials, components, or finished products, these fees can erode profitability, especially in time-sensitive or high-volume scenarios. Fortunately, strategic use of FTZs and bonded warehousing offers a way to defer, reduce, or even eliminate tariffs, and Aries is here to guide you every step of the way.
Foreign Trade Zones (FTZs): Maximize Savings, Minimize Hassle
An FTZ is a designated area within the U.S. that’s considered outside of U.S. Customs territory. Goods can be imported, stored, manipulated, or manufactured in an FTZ without immediate customs duties, providing significant financial flexibility. At Aries Worldwide Logistics, we leverage FTZs to help you:
- Defer Duties: Store goods indefinitely without paying tariffs until they enter U.S. commerce. This preserves cash flow, especially for businesses awaiting the right market conditions.
- Reduce Costs with Inverted Tariffs: If tariffs on raw materials are higher than on finished products, you can assemble goods in an FTZ and pay the lower rate—or none at all if re-exported. For example, a manufacturer importing components can finish assembly in our FTZ facilities and export the product duty-free.
- Eliminate Duties on Exports: Goods re-exported from an FTZ avoid U.S. customs duties entirely, a game-changer for businesses with international markets.
Whatever the location or capacity of your need, Aries provides the capacity and expertise to manage your FTZ needs. Our cutting-edge AIMS platform offers real-time tracking of shipments and inventory, ensuring you maintain visibility and control while avoiding unnecessary costs.
See one of our FTZ locations in Santa Teresa, New Mexico.
Bonded Warehousing: Tactical Tariff Deferral
For businesses needing shorter-term storage or specific handling, our bonded warehousing services offer another powerful tool. Unlike FTZs, bonded warehouses operate under U.S. Customs supervision and allow imported goods to be stored for up to five years without paying duties until they’re released into the domestic market. Here’s how Aries makes bonded warehousing work for you:
- Delay Duty Payments: Store goods securely and defer tariffs until you’re ready to distribute, improving cash flow and giving you time to strategize.
- Streamline Customs Compliance: Our expert Customs & Trade Services team handles documentation and ensures compliance, so you avoid penalties and delays.
- Support Complex Needs: From kitting and pick-and-pack to consolidations, our bonded facilities manage intricate inventory requirements while keeping costs in check.
Aries’ bonded warehousing is backed by our robust Warehouse Management System (WMS), featuring barcoded inventory and handheld scanning for precision and transparency—accessible via our AIMS online portal.
The Aries Difference: Technology + Service
What sets Aries apart is our commitment to blending advanced technology with best-in-class client care. Our AIMS platform creates an Information Supply Chain, giving you unparalleled visibility into your shipments and inventory—whether in an FTZ, bonded warehouse, or transit. Meanwhile, our dedicated Client Care Group provides a single point of contact, ensuring your tariff-avoidance strategy is executed flawlessly.
For example, a client facing urgent rig downtime can rely on Aries to store critical parts in an FTZ, assemble them duty-free, and deliver them across North America or internationally without tariff delays. Another might use our bonded warehouse to hold seasonal goods, releasing them into the U.S. market only when demand peaks—avoiding duties until the optimal moment.
Why Choose Aries?
- Global Reach: Our national and international network simplifies tariff management across borders.
- Tailored Solutions: Whether you need FTZ flexibility or bonded warehousing precision, we customize logistics to your business.
- Proven Expertise: Decades of experience in supply chain management mean we anticipate challenges and deliver results.
Take Control of Your Tariffs Today
Don’t let tariffs dictate your logistics strategy. With Aries Worldwide Logistics, FTZs and bonded warehousing become powerful tools to save money, enhance efficiency, and scale your business. Contact us today to explore how our technology-driven solutions and client-focused service can transform your supply chain—keeping you ahead in a competitive global market.