Bringing Foreign Trade Zone Services to Bear for Pharmaceutical Customers

Achieving Foreign Trade Zone status

MD Logistics has become one of only a few pharmaceutical third-party logistics (3PL) companies in the Indianapolis area to achieve Foreign Trade Zone status.

Having FTZ status means that when a customer’s imported product arrives at a U.S. port, it can be moved immediately to MD Logistics facilities without waiting for customs clearance.

This rapid movement creates a significant advantage when dealing with the delivery of sensitive pharmaceuticals, most of which require storage at a constant temperature of 2 to 8 degrees Celsius.

This achievement comes just 18 months after the company activated a foreign trade zone within its retail logistics operation.

Being able to rapidly move expensive and sensitive pharmaceuticals significantly reduces the risk of handling such products, as well as substantially reducing costs incurred by the shipper.

“With our FTZ status and our expertise in handling pharmaceuticals, customers can be assured of their product’s integrity when it reaches the end user, the consumer”Jeffrey Luthman,
Vice President, Life Science Solutions, MD Logistics

It also enhances MD Logistics’ customer service on an international scale, from order entry to final delivery.

Products are considered still on foreign ground while they are stored in an FTZ environment, and customers do not have to pay customs fees until the product is consumed or moved out of the FTZ.

“Products stored in an FTZ are considered to still be on foreign ground, which delays payment of customs fees,” said Jeff Luthman, vice president of life science solutions for MD Logistics.

“With our FTZ status and our expertise in handling pharmaceuticals, customers can be assured of their product’s integrity when it reaches the end-user, the consumer.”

MD Logistics sees this as an opportunity to increase jobs and business in Indianapolis, said John Sell, vice president of retail and transportation services.

“We’re excited to launch a service that will profoundly improve efficiency and significantly lower the cost of our services on a global scale, as well as grow our business locally.”

Related White Papers

Download Getting Serious About Serialization, The Drug Quality, And Security Act

Getting Serious About Serialization, The Drug Quality, And Security Act
This white paper will discuss why serialization is a necessity for the integrity and visibility of pharmaceutical supply chains as well as three traits that are essential to successful serialization implementation. Download Now!

Download Safely Transporting Cold Chain Pharmaceutical Product

Safely Transporting Cold Chain Pharmaceutical Product
This white paper will discuss the components to consider when defining a transportation solution for your pharmaceutical supply chain and how incorporating a third party into your solution will pay dividends. Download Now!

The Legislation that is Shaping the U.S. Pharmaceutical Supply Chains
On Nov. 27, 2013, President Obama signed the Drug Quality and Security Act into law, effectively setting the framework of what would become a nationwide initiative toward wide-scale pharmaceutical serialization. Download Now!

Extending the Life Sciences and Pharmaceuticals Supply Chain
A comprehensive analysis of how value-added services are revolutionizing an industry. Download Now!

Controlling Temperature in Pharmaceutical Supply Chains
A comprehensive analysis of temperature control processes as essential components of an efficient quality control process. Download Now!

More Resources from MD Logistics

Read the Article: Responding To Pharmaceutical Drug Serialization