Bonded Warehouse, CFS, CY, FTZ Which Port Facility Best Fits Your Import?
When importing goods into the U.S. or managing global freight, choosing the right type of port facility CFS, CY, FTZ, or Bonded Warehouse is more than a logistics decision; it’s a strategic move that can impact customs clearance, duty payments, and overall shipping efficiency.
With heightened customs enforcement, evolving trade regulations, and rising warehousing costs in 2025, importers and freight forwarders must understand the unique functions and benefits of each facility.
This guide will clarify their differences and help you make informed decisions to streamline your supply chain.
Understanding the Key Port Facility Terms
Let’s begin with the basic definitions of each facility:
📦 Container Freight Station (CFS)
A CFS is a terminal where Less-than-Container Load (LCL) shipments are consolidated or deconsolidated. If your cargo shares space in a container with shipments from other importers, it will likely pass through a CFS for customs clearance, sorting, and temporary storage.
🚢 Container Yard (CY)
A CY refers to a designated storage area at a port where Full Container Load (FCL) shipments are held. These containers remain sealed from origin to destination and don’t require unpacking at the port. It’s ideal for shippers moving high-volume goods with minimal handling.
🏗️ Bonded Warehouse
A bonded warehouse is a secure customs-controlled facility where imported goods can be stored without immediately paying import duties. Duties are only paid when the cargo is withdrawn for domestic consumption. These warehouses are particularly useful for tariff sensitive goods or cargo intended for re-export.
🌐 Foreign Trade Zone (FTZ)
An FTZ is a special trade zone located in or near a U.S. port where businesses can delay, reduce, or eliminate customs duties. These zones allow for value-added activities such as repackaging, assembling, or processing under U.S. Customs and Border Protection (CBP) supervision. FTZs are widely used by manufacturers and high volume importers.
Comparison of CFS, CY, Bonded Warehouse, and FTZ
| Feature | CFS | CY | Bonded Warehouse | FTZ (Foreign Trade Zone) |
|---|---|---|---|---|
| Cargo Type | LCL (shared containers) | FCL (sealed containers) | High-tariff or duty-sensitive goods | Manufacturing, re-export, long-term storage |
| Duty Payment | At customs clearance | At customs clearance | Deferred until withdrawal | Deferred; sometimes reduced or eliminated |
| Supervision | CBP-regulated | CBP-regulated | Licensed and bonded by CBP | CBP-supervised via FTZ operator |
| Common Users | Small importers, freight forwarders | Direct FCL shippers | Tariff-sensitive importers | Manufacturers, distributors, 3PLs |
| Location | Near seaports or terminals | Inside port terminal | Near ports or inland logistics hubs | Within designated U.S. FTZ boundaries |
When to Use Each Facility Type
Choosing the right facility depends on your cargo type, cost priorities, and customs strategy. Below are some practical use cases for each option:
✅ Use a CFS When:
You are shipping LCL cargo that must be consolidated or deconsolidated.
Your goods are grouped with other shippers’ cargo.
You require temporary storage or customs clearance before delivery.
✅ Use a CY When:
You’re handling a Full Container Load (FCL).
Your cargo does not need to be unpacked or sorted at the port.
Your consignee is ready to receive the full container directly.
✅ Use a Bonded Warehouse When:
You want to postpone paying duties until goods are sold or used.
You anticipate re-exporting goods and want to avoid unnecessary duties.
You’re dealing with volatile tariffs or regulatory shifts.
✅ Use an FTZ When:
You import raw materials for manufacturing or value-added processing.
You aim to consolidate shipments from multiple origins before entry.
You want flexibility to re-export or defer duties until final goods are entered.
Cost Considerations & Documentation Requirements
💰 Facility Cost Breakdown
CFS: Charged per CBM (cubic meter) with added fees for handling, sorting, and storage.
CY: Lower handling fees for sealed containers, but risks demurrage and chassis detention charges.
Bonded Warehouse: Monthly storage and bonding fees apply; duties are delayed, improving cash flow.
FTZ: Higher administrative setup costs, but lower Merchandise Processing Fees (MPF) and duty reductions can result in net savings.
📄 Required Documentation
For all facility types, ensure you have:
A commercial invoice
A packing list
A bill of lading
Harmonised Tariff Schedule (HTS) codes, especially crucial for bonded and FTZ entries
For bonded warehouse and FTZ use, work with a licensed customs broker to ensure compliance with CBP entry and exit regulations.
Risks and Common Mistakes to Avoid
Misrouting LCL cargo to a CY can lead to costly port delays.
Incorrect HTS classification could result in overpaying duties or compliance issues.
Failure to file FTZ admission correctly may forfeit duty deferral benefits.
Poor recordkeeping in bonded facilities can trigger audits or penalties from CBP.
Which Port Facility Fits Your Needs?
| Your Requirement | Best Facility Option |
|---|---|
| Consolidated cargo with other importers | CFS |
| Full container shipment without unpacking | CY |
| Need to delay or reduce duty payments | Bonded Warehouse or FTZ |
| Importing for manufacturing, assembly, or value-added work | FTZ |
| Planning to re-export part of the cargo | Bonded Warehouse or FTZ |
Conclusion
Optimise Your Import Strategy with the Right Port Facility: Selecting the most suitable port facility CFS, CY, bonded warehouse, or FTZ isn’t just about logistics. It’s about aligning your customs strategy, cost management, and cargo flow with business goals. In a world where supply chain efficiency and compliance are more critical than ever, making the right choice could save you time, money, and regulatory headaches.
For importers, freight forwarders, and logistics professionals alike, understanding these distinctions helps drive smarter, faster, and more profitable decisions. If you need help making the right call consult with SARR Logistics UK to tailor your routing plan based on shipment volume, duty exposure, and destination timing.
FAQ
Q When should I choose a bonded warehouse over an FTZ?
A: Use a bonded warehouse if you need short to medium term storage with delayed duty payments, especially if you may re-export goods. How to use a customs warehouse
Choose an FTZ for long-term storage, manufacturing, or duty reduction on assembled products. Foreign-Trade Zones and Contact info
Q. What is the main difference between a CFS and a CY?
A. A Container Freight Station (CFS) handles Less than Container Load (LCL) shipments that require consolidation or deconsolidation, while a Container Yard (CY) deals with Full Container Load (FCL) shipments that remain sealed and intact throughout transport.
Q. Are duties always deferred in a Foreign Trade Zone (FTZ)?
A. Yes, duties are deferred in FTZs and may even be reduced or eliminated, especially if goods are re exported or transformed into lower duty items before entering U.S. commerce.
Q. What documents are required for using these port facilities?
A. At a minimum, you’ll need a commercial invoice, packing list, and bill of lading. For bonded warehouses and FTZs, customs broker documentation and HTS codes are also required.
Q. What happens if I send LCL cargo to a CY by mistake?
A. Sending LCL cargo to a CY can result in customs delays, port holds, and additional fees because CYs are not equipped to handle deconsolidation of partial shipments.
SARR Logistics UK
If you would like to know more reach out to us today and experience a seamless, efficient, and dependable shipping solution tailored to elevate your business. For further inquiries and to explore how SARR Logistics UK can help you save money contact our team. We are always happy to help.
