XYZ Cosmetics – FTZ Analysis & Optimization Studio

Total Duty Paid YTD

$1,250,000

MPF/HMF Fees YTD

$85,000

Avg Landed Cost / Unit

$18.42

Gross Margin %

62.3%

Inventory Dwell (Days)

32.1

Savings vs. Standard Entry

$214,000

Top SKUs by FTZ Savings

Sankey Flow Analysis

Inventory Dwell Heatmap

Inbound Shipments Overview

Duty & Fees Waterfall

Entry Aggregation Simulation

Shipment Value vs. MPF/HMF

Standard Entry

Total Duty: $1,250,000

MPF/HMF: $85,000

Landed Cost: $18.42/unit

Margin: 62.3%

FTZ – Privileged Foreign

Total Duty: $950,000 (-24%)

MPF/HMF: $65,000 (-23.5%)

Landed Cost: $15.85/unit (-14%)

Margin: 68.1% (+5.8pp)

Bonded Warehouse

Total Duty: $1,080,000 (-13.6%)

MPF/HMF: $70,000 (-17.6%)

Landed Cost: $17.25/unit (-6.4%)

Margin: 65.3% (+3pp)

Decision Matrix

Tariff Direction Product Type Inverted Opportunity Recommended Path
Rising Component Yes FTZ - Inverted
Falling Finished Goods No Bonded Warehouse

Network Mix Recommendation

Recommended Mix:

FTZ: 70%, Bonded: 20%, Direct DC: 10%

Maximized net savings: $322,000/year

Sensitivity Tornado Chart

Monte Carlo Risk Simulation

5th Percentile Savings: $215,000

50th Percentile Savings: $322,000

95th Percentile Savings: $410,000

Compliance Checklist

  • Recordkeeping (✓)
  • FTZ Board Filings (✓)
  • Weekly Entry Filings (⚠ Partial)
  • Reconciliation (✗ Missing)

Risk Map

Risk KPIs

Audit Readiness Score: 72/100

Data Quality: 85%

Exception Alerts: 3

About & Methodology

Understanding FTZ and Bonded Warehouse Scenarios

FTZs are considered outside the U.S. customs territory for tariff purposes. Duties are deferred until merchandise enters U.S. commerce. Weekly entry, direct delivery, inverted tariff opportunities, and scrap/waste relief can create material savings. Goods moved between FTZs under bond avoid duty until entry. If components aren’t admitted as privileged foreign status, the applicable duty can be based on the classification of the finished goods ultimately entered into the U.S.

Bonded Warehouse scenarios can benefit when tariff rates decline since duty is assessed at withdrawal. FTZ can lock duty rate at admission if privileged foreign status is used, which helps when rates increase.

There are 260+ FTZs in the U.S., typically near ports of entry. Using an FTZ operator/3PL can accelerate adoption for brands looking to reduce customs compliance burden and duty spend.

Key Features of This Dashboard

  • Simulation of duty/tariff savings using synthetic data
  • Comprehensive cost modeling with MPF, HMF, storage fees, and compliance overhead
  • Inverted tariff modeling for assembly scenarios
  • Risk modeling with Monte Carlo simulations
  • Optimization recommendations based on business rules
  • FTZ vs. Bonded Warehouse decision matrix
  • Off-cycle financial impact analysis

Demonstration only. FTZ/Bonded mechanics summarized from public resources: strtrade.com, geodis.com, bergenlogistics.com, chiefexecutive.net, zhftaxlaw.com.

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