Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Basic ftz info nov 2013

  • Login to see the comments

  • Be the first to like this

Basic ftz info nov 2013

  1. 1. What is a Foreign Trade Zone? • Secure areas located in or adjacent to a Customs Port of Entry • Legally outside the US Customs territory – Goods in zones are considered to be part of international commerce, not domestic – It is only once goods leave the zone to enter the commerce of the US, that normal tariff and Customs regulations apply to those goods
  2. 2. FTZ Regulations • 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)
  3. 3. Purpose of the FTZ Program • Expedite and encourage foreign commerce • Create jobs and investment in the US that would otherwise take place overseas
  4. 4. What can be done in an FTZ? Merchandise entering a zone can be: Assembled Displayed Stored Destroyed Manipulated Sampled Manufactured Relabeled Cleaned Sampled Tested Processed Repaired Repackaged
  5. 5. What are the benefits of an FTZ? • Duty deferral • Duty reduction (inverted tariff) • Duty reduction or elimination on scrap/waste • Streamlined entry procedures – Direct delivery – Weekly entries • Reduction in merchandise processing and brokerage fees • Exemption from ad valorem taxes
  6. 6. Additional benefits • Improved Customs compliance • Lower security and insurance costs • Shorter transit time using direct delivery • No time constraints on storage • Improved inventory control • Customs interaction
  7. 7. Regulatory agencies • There are two primary agencies that regulate FTZs:  FTZ Board – Establish how FTZs are designated and authorized to activate  US Customs – Regulate the operation of FTZ once activated
  8. 8. Zone Terminology • General Purpose Zone – – – – A site or facility that provides multiple users Public warehouse Industrial park Port complex • Subzone (Special purpose zone) – Single-purpose, single company site – Typically manufacturing or large distribution operation
  9. 9. Zone Terminology • Grantee – Frequently port authorities, state/local economic development agencies – Serves as public representative of the zone project – Submit applications for zone modifications, site approvals and manufacturing authority – Responsible for monitoring the operations and status of zone use
  10. 10. Zone Terminology • Operator – Provide day-to-day oversight of zone site activities which include receipt, storage and shipping of merchandise, recordkeeping, and periodic reporting – Deals directly with Customs on day-to-day matters – Responsible for Customs compliance within the zone site
  11. 11. FTZ Participants
  12. 12. FTZ #122 • Grantee – Port of Corpus Christi • Applied in April 1984 • Approved in September 1985 • First continental zone with refinery subzones • 19 approved sites • All Port Corpus Christi property and facilities are included in the boundaries of the general purpose area
  13. 13. FTZ #122 Operators • Valero Refining • • • • • Citgo Refining Flint Hills Resources BTB Refining Sherwin Alumina TOR Minerals • International Resistive Company (IRC) • Kiewit Offshore Services • Gulf Marine Fabricators • Baker Hughes Drilling Fluids • Halliburton Energy Services • Excalibar Minerals • Gavilon Fertilizer • Port Corpus Christi
  14. 14. FTZ #122
  15. 15. Alternative Site Framework (ASF) • Adopted by FTZ Board in 2009 • Provides greater flexibility in providing zone status • Streamlines the process for getting FTZ status • Port Corpus Christi reorganized under the ASF in 2013
  16. 16. FTZ #122 Service Area

×