Free Trade Zone Savings Calculator
Duty savings from Foreign Trade Zone re-export and deferral.
About this calculator
A Foreign Trade Zone (FTZ) lets an importer bring goods into the country without immediately triggering customs duty, and this calculator models the two distinct ways that generates savings. First, any share of goods re-exported straight out of the zone (Re-Export %) never enters domestic commerce, so the duty that would have applied to that portion is eliminated outright — that's the Re-Export Duty Saved figure. Second, for the remaining goods that do enter domestic commerce, the duty payment is deferred for however long they sit in the zone (Avg. Days in FTZ) before formal entry; the calculator treats that delay as an interest-bearing benefit, applying a fixed 5% annual interest rate to the duty owed on the domestic-bound goods, prorated by the fraction of a year the payment was deferred.
Total annualized savings is the sum of both effects, scaled up by annual shipment volume, and then reduced by an estimated FTZ operating cost — a flat $5,000 base fee plus 0.1% of annual import value — to arrive at a net savings figure. Because both benefits scale with the duty rate, FTZ economics favor high-tariff goods and high-volume, high-value operations; a business importing low-duty items in small quantities may find the zone's fixed fees outweigh the savings. Note that the 5% deferral interest rate and the fee structure are simplified planning assumptions, not fixed regulatory figures — actual FTZ operating costs, and the opportunity cost of deferred capital, vary by zone operator and by each company's real cost of capital.
Legal Disclaimer
This calculator provides general estimates only and does not constitute legal advice. Laws, regulations, and court procedures vary significantly by jurisdiction. Consult a licensed attorney in your area for advice specific to your situation.
Inputs
Results
Net FTZ Savings ($)
$135,762.00
≈ 9 used cars
How to Use This Calculator
- Enter Import Value per Shipment and Duty Rate % for your product.
- Set Re-Export % — goods re-exported from an FTZ owe no import duties.
- Enter Avg Days in FTZ before formal entry into U.S. commerce.
- Set Annual Shipments for total annualized savings.
- Review Net FTZ Savings after zone fees.
- FTZ benefits are greatest for high-duty goods, frequent shipments, and operations with significant re-export volume.
How the result changes with Duty Rate (%)
| Duty Rate (%) | Net FTZ Savings ($) |
|---|---|
| 4 | $62,381.00 |
| 6 | $99,071.00 |
| 12 | $209,142.00 |
| 20 | $355,904.00 |
What each input means
- Import Value per Shipment ($)
- CIF value of each import shipment.
- Duty Rate (%)
- Applicable tariff rate.
- Re-Export (%)
- Percentage of goods re-exported (duty-free from FTZ).
- Avg. Days in FTZ
- Average time goods stay in the zone before entry.
- Annual Shipments
- Number of import shipments per year.
What each result means
- Net FTZ Savings ($)
- Total savings minus FTZ fees.
- Re-Export Duty Saved ($)
- Duties avoided on re-exported goods.
- Deferral Interest Saved ($)
- Interest savings from deferred duty payment.
- FTZ Fees ($)
- Annual FTZ operating and compliance fees.
- Normal Annual Duty ($)
- Duties without FTZ benefits.
- Duty Actually Paid ($)
- Duty on goods entering domestic commerce.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersImport Value per Shipment ($) = 500000, Duty Rate (%) = 8, Re-Export (%) = 30, Avg. Days in FTZ = 60 = 5 input(s) provided
- Calculate Net FTZ SavingsNet FTZ Savings = totalSavings - ftzFees135762 = $135,762
- Calculate Re-Export Duty SavedRe-Export Duty Saved = reExportValue * (dutyRatePct / 100)144000 = $144,000
- Calculate Deferral Interest SavedDeferral Interest Saved = dutyOnDomestic * interestRate * (dutyDeferralDays / 365)2762 = $2,762
Engine last updated . Checked against 3 independently-derived tests — how we verify calculators. Built by Paul Gunder, a software engineer, not a licensed financial, medical, or legal professional.
Frequently Asked Questions
Where do the two savings sources — re-export and deferral — actually come from?
Re-Export Duty Saved comes from goods that leave the zone for another country without ever entering domestic commerce, so the duty that would have applied to that share of your annual import value is eliminated entirely. Deferral Interest Saved comes from the portion that does enter domestic commerce: the calculator treats the delay in paying duty (Avg. Days in FTZ) as an interest-bearing benefit at a fixed 5% annual rate, prorated by how many days out of 365 the payment was deferred.
Why would a low-duty importer see negative net savings?
FTZ Fees is modeled as a flat $5,000 base plus 0.1% of annual import value, and it's subtracted from Total Savings to get Net FTZ Savings. Because both the re-export and deferral savings scale with Duty Rate (%), a business importing low-tariff goods in modest volume can easily have combined savings smaller than that fixed fee floor, making a zone a net cost rather than a benefit for them.
Is the 5% deferral interest rate a real regulatory figure?
No — it's a simplified planning assumption built into this calculator, not a rate set by FTZ regulations. The real value of deferring a duty payment depends on what your company would otherwise do with that cash, i.e. your actual cost of capital, which varies by business and can be meaningfully higher or lower than 5%.
How does Annual Shipments affect the result?
Import Value per Shipment is multiplied by Annual Shipments to get your total annual import value, and every downstream figure — normal duty, re-export savings, deferral savings, and FTZ fees — scales off that annualized total. Doubling your shipment count roughly doubles both the savings and the volume-based portion of the fee, but not the flat $5,000 base fee, so higher-volume operations see a proportionally smaller drag from that fixed cost.
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