In recent years the trade tensions between the United States and China have been a major concern for businesses across the world. With the implementation of tariffs and restrictions on imports and exports, companies have been struggling to navigate the complicated international trade landscape. However one solution that has emerged as a game-changer for many businesses is the use of Foreign Trade Zone (FTZ) warehousing solutions.

FTZs are designated areas where goods can be imported and stored without being subject to the same tariffs and regulations as goods that are imported and stored outside of these zones. These areas are typically located near ports and other transportation hubs which makes them ideal for companies that rely on international trade. By using FTZs companies can reduce the cost of importing and exporting goods which can translate into significant savings for their bottom line.

Access World has been at the forefront of helping businesses take advantage of FTZs. Access World operates FTZs in key locations in the United states such as Houston, Los Angeles, New Orleans and other locations. By leveraging these zones, Access World has been able to help its clients save millions of dollars on importing goods.

For example in 2021 the White House announced steps to crack down on forced labor in the supply chain for solar panels in the Chinese region of Xinjiang, including a ban on imports from a silicon producer there.
China is the dominant global producer of polysilicon. Polysilicon is a raw material that most solar panels use to absorb energy from sunlight. Xinjiang has over the past decade risen as the country’s main production base for the material. Xinjiang makes about 45 percent of the world’s polysilicon.

Access World was able to help solar panel manufacturers to store the material into an FTZ approved warehouse until the manufacturers were able to provide detailed traceability documentation, upon request by the U.S. Customs, of the origin of their products until getting them cleared for consumption. By using this method the panel manufacturers were able to avoid demurrage costs worth millions of dollars as they did not need to leave the containers at the port until customs had cleared the material.

In conclusion: The ongoing trade tensions between the United States and China have created significant challenges for solar panel manufacturers and other businesses looking to navigate the complex import regulations. However by leveraging Access World’s FTZ warehousing solutions, solar panel manufacturers were able to store their materials in a secure, cost-effective, and efficient manner while meeting the regulatory requirements. As the global trade landscape continues to evolve, businesses are likely to increasingly rely on FTZs as a valuable tool for managing their supply chains and staying competitive in the international marketplace.

Access World USA offers warehousing and distribution services in Baltimore, Charleston, Chicago, Detroit, El Paso, Houston, Long Beach, Los Angeles, Miami, Mobile, Newark (New York & New Jersey), New Orleans, Norfolk, Oakland, Owensboro, Phoenix, Portland, Savannah, Seattle, Tacoma, Tampa and Toledo.

Reach out to commercialUSA@accessworld.com for further information.

For a more detailed explanation about FTZ warehousing solutions, click here.

To learn more about our Renewable Energy projects, click here.