The Port of Baltimore handled $65.6 billion of foreign cargo in 2025. A large share of that value carries duty. The rate is set by law and the licensed customs broker confirms it, but when the duty is paid, and whether it is paid at all on goods that leave the country again, depends on choices the importer makes before the container lands. There are four tools. This page compares them.
The four tools in one table
| Feature | FTZ 74 | Bonded warehouse | Drawback | TIB |
|---|---|---|---|---|
| What it is | Site treated as outside customs territory | CBP-licensed storage under bond | Refund of duty after export | Duty-free entry under bond for a limited time |
| Duty timing | At withdrawal for US consumption | At withdrawal for US consumption | Paid at entry, refunded after export | Not paid if exported in time |
| Re-exports | No duty | No duty | Refund claimed later | No duty |
| Domestic sale allowed | Yes, pay duty on withdrawal | Yes, pay duty on withdrawal | Yes, already paid | No |
| Storage limit | None | Fixed period set by regulation | Not applicable | Limited period, extensions possible |
| Kitting and labeling | Yes, under zone procedures | Limited, with CBP permission | After entry, no limits | Only as the bond purpose allows |
| Manufacturing | Yes, when authorized | No | After entry | Processing for export only |
| Weekly entry | Yes | No | No | No |
| Best for | Steady programs, re-export share, kitting, high duty | Storage-only programs, seasonal imports | Exporters who already paid duty | Samples, demo units, repair, exhibition |
When each fits
FTZ 74: steady volume, kitting or a re-export share
A foreign trade zone site holds goods without duty until they leave for US consumption. Goods re-exported from the zone never pay US duty. One entry a week covers all withdrawals. Kitting, labeling and, with FTZ Board authorization, assembly and manufacturing can happen inside the zone. There is no storage time limit.
Baltimore specifics: FTZ No. 74 is administered by Baltimore Development Corporation. The service area covers Baltimore City and Anne Arundel, Baltimore, Cecil, Harford, Howard and Queen Anne’s counties. The whole Tradepoint Atlantic site at Sparrows Point sits inside the zone, and activation of a usage-driven site under the Alternative Site Framework runs in a matter of weeks. The FTZ 74 guide has the activation steps and a worked table.
Fits when: import value is steady, duty is meaningful, part of the volume is re-exported, or the goods are kitted or assembled before sale.
Bonded warehouse: storage only, simpler setup
A CBP bonded warehouse holds imported goods under bond. Duty is paid when goods are withdrawn for consumption, and goods withdrawn for export pay nothing. Manipulation is limited and needs CBP permission. Storage runs for a fixed period set by regulation, after which the goods must be entered or exported. Each withdrawal is its own customs entry.
Fits when: the program is storage and release, volume is moderate, no kitting or assembly is planned, and the importer wants the simplest path.
Drawback: duty already paid, exports already made
Drawback is a refund of duty paid on imported goods that are later exported or destroyed under CBP supervision. It works after the fact. The importer pays duty at entry, exports the goods or products made from them, and files a claim with records that tie each export to its import. The licensed customs broker partner files it.
Fits when: the goods have already been entered and duty paid, and exports are documented. It does not defer anything. It recovers.
TIB: temporary, not for sale
Temporary Importation under Bond admits goods without duty for a limited period, with extensions available on request, for a stated purpose: repair, alteration, testing, exhibition, or processing for export. The goods must be exported or destroyed by the deadline and may not be sold in the United States. A bond secures the duty if the terms are broken.
Fits when: machinery comes in for repair, demo units tour trade shows, or goods are processed here and shipped back out.
A decision path
- Will the goods be sold in the US? If no, TIB (temporary) or FTZ (ongoing re-export program).
- Is duty already paid on goods you exported? If yes, drawback.
- Is it storage only with no handling? Bonded warehouse.
- Is it steady volume, kitting, assembly, high duty or a re-export share? FTZ 74.
What the numbers depend on
Duty rates change, and some tariff orders set their own rules for zone status and timing. The tariff notes page explains Section 232, Section 301 and IEEPA at a plain level. The licensed customs broker partner confirms the rate and the status that applies to your goods on the day they are admitted or withdrawn.
How Baltimore 3PL uses this
The desk matches the program to the tool, then to the partner building: an FTZ or bonded warehouse operator inside the zone, a warehouse partner vetted for the product, and a licensed customs broker partner for entries, claims and bonds. We do not own the warehouse. We own the relationship, and the result.
What to send for a quote
- Annual import value, HTS classifications and current duty rates if known
- Share sold in the US versus re-exported, and to which countries
- Average days from arrival to sale, or inventory turns
- Any kitting, labeling, repair or assembly planned before sale
- Pallet positions or square feet, and preferred location in the FTZ 74 service area
Send it to the quote desk and you get a tool-by-tool comparison for your program within one business day.
Questions shippers ask
01Which option saves the most duty?
None of them reduce the rate on goods sold in the US. They change timing, and they remove duty on goods that leave the country. The biggest saving usually comes from re-exports under FTZ or TIB, or from drawback on exports already made.
02Can I use more than one?
Yes. A common pattern is an FTZ for the main inventory, drawback for duty already paid on past exports, and TIB for trade show or demonstration units. The licensed customs broker partner structures it.
03What is duty drawback?
A refund of duty paid on imported goods that are later exported or destroyed under CBP supervision. It is filed after the fact, with records that tie the export to the import.
04What is a TIB?
Temporary Importation under Bond. Goods enter without duty for a limited period under a bond, for a purpose such as repair, testing, exhibition or processing for export. They must be exported or destroyed, not sold in the US.
05Does Baltimore 3PL file customs entries?
No. Customs clearance, drawback claims and bond filings are coordinated through our licensed customs broker partners. We coordinate the warehouse, the zone operator and the freight, and give you one status report.