Yo Adrian, They're Cheating the System! Find Out How!

Gonna Fly Now... Straight to a Duty Free Zone!

Yo Adrian you won't believe this! These companies big and small they're getting sneaky! They found these places called Foreign Trade Zones (FTZs) and bonded warehouses. It's like if Rocky Balboa was a business this is how he'd dodge Apollo Creed's punches... by moving the whole fight to a place where the rules don't apply! See Trump put these tariffs in place right? But these FTZs they're special spots where you don't gotta pay those duties... at least not right away. It's like 'Yo tariffs? I don't see no tariffs!'

Eye of the Tiger... and the Accountant!

This guy Jackson Wood from Descartes Global Trade Intelligence – sounds like a villain from a James Bond movie right? – he says these FTZs were a 'nonstarter' before. Too much hassle too much dough. But now? They're 'crunching the numbers'. It's like 'Yo I ain't afraid of no numbers! Especially if they save me money!'

Knockout the Tariffs!

So here's the deal. You bring your stuff into an FTZ you store it and you don't pay the tariffs until you take it out to sell it in America. And get this! Sometimes depending on when you take it out you might pay less or even nothing! It's like an 'inverted tariff' whatever that means. Sounds like some kind of fancy boxing move! It's all about savin' money gettin' that 'cost savings operational flexibility and improved cash flow'. Sounds like somethin' Mickey would yell at me during training!

Adrian We Got Memberships!

This Jeffrey Tafel guy head of the National Association of Foreign Trade Zones he says business is booming! Like 'Yo Adrian we did it!' Membership is at an all time high! Everyone's trying to get in on this action especially with these tariff changes happening faster than I can down a plate of spaghetti. They're lookin' for places to stash their goods until they figure out what to do. It's like waitin' for the bell after a tough round!

It Ain't About How Hard You Can Hit... It's About How Smart You Are!

So these FTZs were created back in the 1930s to help businesses in America. Now they're employing over half a million people across the country! Even Maersk the shipping company says FTZs are looking better because other ways to dodge tariffs ain't working. This Janet Labuda from Maersk says some folks are waiting to see what happens others are stashing their stuff in warehouses. Like a good left hook timing is everything!

The Sting Like a Bee... Only More Expensive!

Setting up an FTZ ain't cheap though. You gotta pay for lawyers special staff and fancy computers. But this Gardner lady from Maersk says it depends on how much you import. The big guys are consumer goods cars planes and electronics. And get this! If you make something in an FTZ you might pay a lower tariff than if you imported the parts. It's like taking the stairs instead of the elevator takes more work but you get a better view! And this Dewart fella from Redwood Logistics says everyone's asking about FTZs. It seems like folks are worried these tariffs are gonna stick around longer than my career. 'It seems customers are looking for a solution in case the tariffs stick long term,' he said. So if I can figure out how to use an FTZ then anyone can!