Report: Keurig To Use Duty-Free Zones To Import Coffee Beans

As Keurig Green Mountain works to offset declines in sales of coffee and its single-serve brewers, the company is reportedly moving forward with a plan to import coffee beans into the United States through duty-free zones.

On Monday, Reuters reported that Keurig has applied to federal regulators to create foreign trade zones (FTZ) to warehouse coffee at ports in Seattle, Virginia and New Jersey that would be used for storing and distributing green coffee beans.

The report indicated that the applications were approved earlier this year by the various ports, but have yet to be activated by Customs and Border Protection.

Reuters estimated that Keurig would have saved $1.6 million in fiscal year 2014 by utilizing this strategy.

A Keurig spokesperson told Reuters that the use of FTZs permits the company to pay customers processing fees weekly rather than on every shipment. The spokesperson declined to comment on total cost savings.