Seeking to help manufacturers manage their operations in U.S.-based foreign trade zones, global trade management software vendor QuestaWeb Inc. has rolled out a module that automates customs document filings and other functions.
The company’s new FTZQW module, which can be implemented as a stand-alone application, in conjunction with the company’s GTM system, or pre-integrated with an ERP system, allows manufacturers to track the movement of inventory into and out of foreign trade zones, automates compliance and customs clearance processes, and automates denied party screening processes.
Foreign trade zones are becoming increasingly popular with manufacturers that source parts and materials from offshore but also wish to reduce tariff and other costs, said Wayne Slossberg, a vice president at QuestaWeb. Although they physically exist inside the United States, often near ports, foreign trade zones are officially considered to be outside U.S. customs territory. Manufacturers using foreign trade zones can avoid certain entry procedures and customs duties.
About 2,600 companies today use the U.S. Foreign Trade Zone Program, which was created in the 1930s, according to the National Association of Foreign Trade Zones trade group. The group says U.S.-based foreign trade zones conducted $491 billion in business in 2006.