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Foreign-Trade Zones Board -Using the ASF -Updates

Foreign-Trade Zones Board -Using the ASF -Updates. Part 1 – Using the Zone. What is the ASF? How to have your site designated Manufacturing authority. What is the Alternative Site Framework ( ASF )?:.

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Foreign-Trade Zones Board -Using the ASF -Updates

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  1. Foreign-Trade Zones Board-Using the ASF -Updates

  2. Part 1 – Using the Zone • What is the ASF? • How to have your site designated • Manufacturing authority

  3. What is the Alternative Site Framework (ASF)?: • The ASF is an optional “framework” to manage FTZ sites that gives much greater flexibility to use simple “minor boundary modifications” (instead of more complicated and time-consuming procedures) to bring FTZ designation to locations where a company is ready to use FTZ procedures. • A grantee can participate in the ASF by applying to the FTZ Board to “reorganize” its zone under the ASF.

  4. ASF Terms: • “Service Area” is the geographic area where a grantee can propose “usage-driven sites” • Adjacent to a CBP port of entry • Defined up front to eliminate need for full FTZ Board processes (Federal Register notices, public comment periods, etc.) when new zone users appear and need FTZ designation quickly. • “Magnet Site” is designated based on its ability to attract multiple potential FTZ operators/users • Akin to traditional FTZ site (industrial park, port facility, etc.) designated in advance to attempt to draw FTZ operators/users. • Requires full FTZ Board review process

  5. A “Usage-Driven” site is designated for a company ready to pursue conducting FTZ activity. • Usage-Driven sites can be designated via quick and simple boundary modification (with no swapping of acreage required). • Designation tied to the specific company and limited to the space needed by the company. • If company vacates its Usage-Driven site, the FTZ designation terminates. (A new Usage-Driven MBM can be done if a future occupant of the site wanted to pursue using FTZ procedures.)

  6. Ongoing “Sunset” tests remove unused sites. • Standard five-year sunset period for Magnet sites (possible waiver of sunset for one site). • Three-year sunset period for all Usage-Driven sites. • Sunset deadline for each site extended based on the site’s activation at any time during the sunset period. • For example, a Usage-Driven site with a sunset deadline of October 31, 2012 has admission of foreign-status merchandise in early 2011. As a result, the sunset deadline automatically pushes back to October 31, 2015.

  7. Applying for a Usage-Driven Site • Submitted by the grantee on behalf of a company • Information needed: • Site address/acreage • Company/activity • Right to use site • Map • Legal description • Concurrence from CBP • Timeline: within 30 days

  8. Ohio Counties included in ASF Service Areas • FTZ 46: Hamilton, Butler, Warren, Brown and Clermont Counties • FTZ 138 : Champaign, Clark, Coshocton, Crawford, Delaware, Fairfield, Franklin, Hocking, Knox, Licking, Logan, Madison, Marion, Morrow, Muskingum, Perry, Pickaway, Pike, Ross, Union, Vinton and Wyandot Counties, as well as portions of Guernsey, Athens and Highland Counties • FTZ 181: Ashtabula, Trumbull, Mahoning, Columbiana, Portage, Summit, Stark, Medina, Wayne and Richland Counties

  9. Approved ASF Service Areas in Ohio

  10. Manufacturing in a FTZ • With the ASF, sites can quickly receive FTZ designation and activate with standard warehouse/distribution savings. • May still need specific manufacturing approval • Manufacturing = any activity that changes the 6-digit HTSUS classification of an imported component (may include kitting and light processing)

  11. Production Equipment Benefit • Production equipment to be used in FTZ manufacturing can be brought into the zone in foreign status. • Prior to the payment of duties, equipment can be: • Imported • Assembled • Tested • Duty on imported production equipment is not paid until the equipment is to be used for manufacturing activity.

  12. New/Expanded Manufacturing Activity • Within 30 days under the ASF: • Obtain FTZ designation at the site • Bring in production equipment for assembly and testing (prior to the payment of duties) • Begin manufacturing application process • Immediate cost savings

  13. Manufacturing Applications • What to include: • Q & A application format on website • Tell your story • Call if you are unsure what we are asking • Send us a draft • Timeline • 6-8 month goal for manufacturing applications (includes public comment period, FTZ staff review and interagency review process)

  14. Temporary/Interim Manufacturing (T/IM) • Completed within 75 days for up to a 2-year period • Same application can also request standard manufacturing • Eligibility: • Within an existing zone site • Non-controversial activity • Similar to a FTZ Board review within the last 5 years • Imported components and finished products match prior approvals at the 6-digit HTSUS level or • Imported components and finished products match at the 4-digit HTSUS level and the activity is similar • Database on website with 5 years of prior reviews

  15. Part 2 - Statistics

  16. ASF Facts • Total: • 50 zones have reorganized under ASF • 12 requests pending • Includes: • Long Beach, San Diego, Chicago, New Orleans, Seattle, San Francisco, Atlanta, Jacksonville, Dallas areas

  17. Current Statistics • 250+ Zones in all 50 states and Puerto Rico • 2,500 firms using FTZs • Over 300,000 employees in active zones • $430 billion in merchandise was handled in FTZs in FY 2009

  18. Primary industries using zones • Petroleum Refining • Pharmaceuticals • Automotive • Chemicals • Electronics

  19. Main Categories of Merchandise Received – General-Purpose Zones ($ million) • Consumer Electronics $10,162 • Metals/Minerals 9,479 • Vehicles 7,039 • Petroleum Products 4,502 • Textiles/Footwear 1,368 • Other Electronics products/parts 1,335 • Vehicle Parts 1,048 • Machinery/equipment 740

  20. Main Categories of Merchandise Received – Subzones ($ million) • Crude Oil $109,066 • Petroleum Products 12,471 • Pharmaceutical Products 6,998 • Vehicle Parts 4,807 • Machinery/Equipment 2,860 • Vehicles 1,130 • Consumer Products 896 • Other Electronics Products/Parts 792 • Chemical Products 765

  21. Part 3 - Updates • OFIS • Annual Reports • Regulations

  22. Online FTZ Information System (OFIS) • Now available at www.trade.gov/ftz • All zone sites, Federal Register notices and other information available in one location (including maps and sunset dates for sites) • No log in needed for zone and site information • Grantees can track and update the status of their sites, update contact information and request operator accounts

  23. Click here for Grantee contact information, site and subzone lists for each zone.

  24. Click “Open” next to the Zone Number

  25. Grantee contact information Zone site information is displayed

  26. For additional information on a specific site, click “Open” next to a site number.

  27. Click the “Back” button to return to the previous page

  28. Click on “Federal Register Notices” option in the main menu to search for published Federal Register notices by company, year or zone number.

  29. To search by zone number, select the zone number from the list Then click “Search”

  30. A list of all FR notices for that zone will display Click “Open to view a specific notice

  31. The full text of the notice will display If the notice is a recently docketed case, the application (in pdf format) will be available. You can click on the pdf file to open the application.

  32. Click “Back” to return to the previous page

  33. You can also use the “Search” option in the main menu to locate information

  34. Type a word or phrase here Then click “Search”

  35. Click “Open” for additional information on any of the documents found

  36. Grantees can log in and update certain information

  37. Click here to log in as an operator

  38. A pop-up box will then ask for your User Name and Password. Type in your assigned username and password. Tip - Make sure Caps Lock is off!

  39. When you log in, you will see this Welcome screen. You can still access the public information in the top left menu, and new options are also available in the bottom left menu.

  40. Click here to enter annual report information for the current year You will also choose this option to edit a report that you saved earlier.

  41. The actual report you see may vary slightly depending on the type of FTZ activity you conduct. At any time you can save the report and return to work on it later First indicate if you used FTZ procedures during the preceding calendar year (January 1 – December 31)

  42. Before submitting your report to your grantee, you will need to include a response in each box.

  43. As you enter your information, the rows in gray will be automatically calculated

  44. Under the “Main Categories of Foreign Status Merchandise Received” you only need to enter the primary country of origin (all countries of origin do not need to be listed)

  45. At the bottom of the screen, you will be able to indicate if the numeric data in the report is business proprietary

  46. When you have completed the report hit “Submit” to send the report to your grantee

  47. If you receive this error message, click ok and return to the report to fill in the fields that are missing information.

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