1 / 21

FOREIGN TRADE ZONE

FOREIGN TRADE ZONE. What is a Foreign Trade Zone (FTZ)?. A secure area located in or near a port of entry that is considered to be outside the country, or at least, outside U.S. Customs territory. What is the Purpose of a FTZ?.

norton
Download Presentation

FOREIGN TRADE ZONE

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FOREIGN TRADE ZONE

  2. What is a Foreign Trade Zone (FTZ)? A secure area located in or near a port of entry that is considered to be outside the country, or at least, outside U.S. Customs territory.

  3. What is the Purpose of a FTZ? • To encourage, facilitate and expedite U.S. participation in international trade. • To encourage global competitiveness of U.S.-based companies

  4. Benefits of FTZs • Community Benefits • Economic growth • Jobs created or retained in the community • Creates opportunities for suppliers and service providers of the community • Can attract new business investments to the area

  5. Benefits of FTZs (continued) • Business Benefits • Defer, reduce or eliminate Duties • Imported goods or domestic goods designated for export are exempt from state and local ad valorem taxes • Goods can be held in a zone until a quota opens or for an unspecified length of time • CBP security requirements provide protection against theft

  6. FTZ Authority • U.S. Foreign Trade Zones Act of 1934 (19 USC 81a-u) • Foreign Trade Zones Board Regulations (15 CFR Part 400) • U.S. Customs Service Regulations (19 CFR Part 146)

  7. What May be Done in an FTZ? Merchandise entering a zone may be: Assembled Salvaged Manufactured Displayed Relabeled Cleaned Stored Mixed Sampled Tested Destroyed Processed Repaired Repackaged Manipulated

  8. What May be Placed in an FTZ? Any foreign or domestic merchandise not prohibited by law. • The FTZ Board may exclude any merchandise that in its judgment is detrimental to the public interest, health, or safety. • Merchandise subject to quota restrictions may be admitted until a quota on entry is removed; or may be manufactured or manipulated into a product that is not subject to quota.

  9. Types of FTZs • General Purpose Facilities available for public use Generally industrial parks • Subzone Single-purpose sites for operations that cannot be feasibly moved to, or accommodated in a general purpose zone (refineries, manufacturers, etc.)

  10. FTZ Participants Overview

  11. FTZ Board Role • Review applications to establish or alter the boundaries of FTZs. • Recommend approval of any zone or subzone application which is in the public interest. • Regulate administration of FTZs.

  12. CBP Role • Handles the day-to-day monitoring of zone activity. • Regulatory control over merchandise moving to or from a zone. • Ensure that all revenue is properly collected. • Ensure adherence to the laws and regulations governing the merchandise. • Ensure that merchandise has not been overtly or illegally removed from the zone without proper Customs permits.

  13. Role of the Grantee • Submits Applications for Subzones and Zone Modifications • Prepares Annual Reports • Prepares Zone Schedule • Interfaces with the FTZ Board • Interfaces with U. S. Customs • Interfaces with Subzone and General Purpose Operators

  14. FTZ #122 • Grantee – Port Corpus Christi • Established in September 1985 • 3 General Purpose sites within FTZ #122 • Located on Port complex and in industrial sites • Port owned warehouse and storage area available to users • 14 Subzones within FTZ #122

  15. Use of General-Purpose Sites • Initiated by contacting FTZ Manager • Operator/Users shall comply with rules and regulations of FTZ Program • Operator/User responsible for preparation and filing of required Customs documents

  16. Establishing Subzone Status in FTZ #122 • Multi-step process • Gaining authorization from FTZ Board to establish, operate and maintain a subzone • Gaining approval from Customs for activation to allow merchandise to be admitted to the zone

  17. Subzone Operators • BTB Refining • Gulf Marine Fabricators • Bay Ltd. • TOR Minerals International • CITGO Refining • Valero Refining – Corpus Christi location • Sherwin Alumina • Halliburton Energy Services • Flint Hills Resources • Valero Refining – Three Rivers location • Equistar Chemicals • International Resistive Company (IRC) • Kiewit Offshore Services • Baker Hills Drilling Fluids

  18. Subzone Application Process • Application is submitted by the Grantee on behalf of company seeking FTZ benefits • Application submitted to the FTZ Board • Application must include extensive information on the proposed zone project • Application fees

  19. Subzone Activation Process • Subzone must be authorized/approved by FTZ Board before activation process begins • Written request for activation submitted to Customs • Supporting documents required • Blueprint of area • Procedures manual • Written concurrence from Grantee • Guage table (where applicable)

  20. Additional Resource • Instructions for preparing and submitting applications are available on the Foreign-Trade Zones Board website: http://ia.ita.doc.gov/ftzpage/applications.html

  21. Questions? Sonya Lopez-Sosa FTZ #122 Manager Port of Corpus Christi 361/885-6187 – Office 361/881-5162 – Fax Email - Sonya@pocca.com

More Related