Bonded, CFS, FTZ:
What’s the Difference?
CFS, FTZ, Bonded… if you’ve ever felt like you need Google Translate for all these terms, you’re not alone. Here’s a quick guide to help you navigate the differences:
CFS (Container Freight Station)
A temporary sorting facility for loading and unloading containers for import and export.
• Used for consolidating shipments prior to export or deconsolidating full containers after import.
• No duty deferral or long-term storage—just a temporary stop.
• Ideal for importers looking to breakdown containers into smaller shipments for regional distribution.
Bonded Warehouse
A secure, long-term storage facility for storing goods duty-free until ready for sale.
• Used for holding finished goods in inventory until needed.
• Duties are deferred until the goods are shipped out of the warehouse.
• Best for importers who need storage, plus phased distribution and payment of duties.
Foreign Trade Zone (FTZ)
A designated facility where imported goods can be assembled, repackaged, or altered before final entry.
• Used for assembling or modifying imported components before sale.
• Potential to reduce or even eliminate duties based on final product classification.
• Ideal for manufacturers and value-added processors.
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