Transcript FOREIGN TRADE ZONES

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?
 To encourage, facilitate and expedite
U.S. participation in international
trade.
 To encourage global competitiveness
of U.S.-based companies
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
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
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)
What May be Done in an FTZ?
Merchandise entering a zone may be:
Assembled
Displayed
Stored
Tested
Repaired
Salvaged
Relabeled
Mixed
Destroyed
Repackaged
Manufactured
Cleaned
Sampled
Processed
Manipulated
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.
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.)
FTZ Participants Overview
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.
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.
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
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
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
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
Subzone Operators
 BTB Refining
 Flint Hills Resources
 Gulf Marine Fabricators
 Valero Refining – Three
 Bay Ltd.
Rivers location
 Equistar Chemicals
 International Resistive
Company (IRC)
 Kiewit Offshore Services
 TOR Minerals International
 CITGO Refining
 Valero Refining –
Corpus Christi location
 Sherwin Alumina
 Halliburton Energy Services
 Baker Hills Drilling Fluids
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
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)
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
Questions?
Sonya Lopez-Sosa
FTZ #122 Manager
Port of Corpus Christi
361/885-6187 – Office
361/881-5162 – Fax
Email - [email protected]