The document summarizes the process for entries and withdrawals from a foreign trade zone. It discusses: 1) The required forms for entries (CBP 214 and 7512) and withdrawals (CBP 216). 2) How merchandise can be moved in-bond within the US or for export using form 7512. 3) When a consumption entry (CBP 3461) is necessary to pay duties. It also provides an overview of advantages of using a foreign trade zone and the different processes for importing yachts, including temporary importations, dutiable importations, duty free trade agreements, and boat show bonds.

2. AGENDA
 Zone entries/withdrawals - Entry Process
 Advantages of Using a Foreign Trade Zone
 Yacht Importations and Process

3. ZONE ENTRIES/WITHDRAWALS – THE PROCESS
The process includes:
3. Foreign Trade Zone entries
4. Foreign Trade Zone withdrawals
5. In-bond movement of cargo
6. Consumption entry of merchandise
7. Distribution of merchandise

4. ZONE ENTRIES/WITHDRAWALS – THE PROCESS
1. ENTRIES
CBP Form – 214
• This form allows your merchandise to enter the Foreign Trade Zone and is created by the
zone operator. It consists of a complete description and piece count of the items being
entered into the Foreign Trade Zone. The 214 is then presented to CBP for review and
subsequent approval.
• To create this form the following must be provided:
A commercial invoice from the manufacturer/supplier, listing the buyer/consignee. It must
also contain a detailed description of each item, serial numbers (if applicable), piece
count, unit price and extended price as well as country of manufacture for each item.
CBP Form – 7512
• This form is prepared by ourselves (VANDEGRIFT) and allows your merchandise to
transit, under bond, from the airport/seaport to the foreign trade zone without having to file
a consumption entry and pay duty with CBP. This form will also be mentioned again in the
withdrawals section.

5. ZONE ENTRIES/WITHDRAWALS – THE PROCESS
2. WITHDRAWALS
CBP Form – 216
This form allows you to remove one, several or all items from the
zone and is prepared by the zone operator.
To create this form the following must be provided:
• A complete listing of all items to be removed
• Whom they are being sold to or where they are being moved
to in-bond

6. ZONE ENTRIES/WITHDRAWALS – THE PROCESS
3. IN-BOND MOVEMENT
CBP Form – 7512
This form is prepared by ourselves (VANDEGRIFT) and allows you to move
items in-bond from the foreign trade zone, without having to enter them into
the US and pay duties and taxes, to either a foreign flag vessel (ships
spares) or to an airline or cargo ship to be exported out of the US.

7. ZONE ENTRIES/WITHDRAWALS – THE PROCESS
4. CONSUMPTION ENTRY
CBP Form – 3461
This form is required for any items being withdrawn from the foreign trade
zone and being sold to an individual or company in the US and will require
the payment of duties and taxes.

8. ZONE ENTRIES/WITHDRAWALS – THE PROCESS
5. DISTRIBUTION
In-bond moves, consumption entries and distribution go hand in hand.
When you are ready to distribute some or all of your merchandise, whether it
was sold to a domestic US purchaser or a foreign flag vessel, you must first
start with a list of items sold and to whom.
The FTZ operator will then start the distribution process by issuing the CBP
Form - 216, presenting it to CBP for processing. Then VANDEGRIFT will issue
either a CBP Form- 7512 or prepare a CBP form - 3461.
VANDEGRIFT will also arrange for your domestic or international
transportation, whether it be over the road, via air or via ocean.

9. ADVANTAGES OF USING A FOREIGN TRADE ZONE
• Inventory control
• No time limit
• Security
• No duties & taxes while in the zone
• Picking, packing and distribution
• Limited exposure to overhead cost and operating expenses

10. YACHT IMPORTATIONS AND THE PROCESS
Yacht importations are broken up into several categories:
Yacht Importations and the Process
4. Temporary importations (TIB)
6. Dutiable importations
8. Duty free importations (Trade agreements)
10. Boat show bonds (BSB)

11. YACHT IMPORTATIONS AND THE PROCESS
1. Temporary Importations under bond (TIB)
There are several TIB options, the two most commonly used for yachts are;
• entered for repairs
• entered as a sample for the purpose of taking orders
a TIB is only good for one year and can be extended up to 2 additional
years by submitting a letter requesting the extension and the reason why at
the end of the first and second years. The extension is not automatic and
must be approved by CBP. No cruising permit can be issued and the
vessel cannot be used for anything other than display. A TIB is closed
when the vessel is exported under CBP supervision and proof of arrival into
a foreign country is submitted and accepted by CBP.

12. YACHT IMPORTATIONS AND THE PROCESS
2. Dutiable importations
All yachts, with the exception of those from countries with a trade
agreement, are subject to a 1.5% duty on the invoice value, minus the
cost of freight and insurance.
Additionally they are subject to a Merchandise Processing Fee (MPF)
of .21% (max cap at $485) and those arriving by cargo ship are subject to
a Harbor Maintenance Fee (HMF) of .125% ( no max cap).

13. YACHT IMPORTATIONS AND THE PROCESS
3. Duty free importations (Trade agreements)
Yachts manufactured in a country that has a free trade agreement with the
US or are eligible for GSP are afforded duty free entry if they meet certain
criteria.
One criteria is that they must be manufactured in that country and arrive into
the US directly from that country. It can be aboard a cargo ship or on their
own bottom.
Three main yacht manufacturing countries that currently have a free trade
agreement or are eligible for GSP with the US are: Australia, South Africa
and Turkey.

14. YACHT IMPORTATIONS AND THE PROCESS
4. Boat show bonds (BSB)
An otherwise dutiable vessel used primarily for recreation or pleasure and
exceeding 79’ in length that has been previously sold by a manufacturer or
dealer to a retail consumer and that is imported with the intention to offer for
sale at a boat show in the United States may qualify at the time of
importation for a deferral of entry and deposit of duty.
There are qualifying factors that must be met as well.
It is also important to note that once a yacht is exported and the BSB is
cancelled, a new BSB cannot be issued for 3 months and then only in
conjunction with being entered into a boat show. You cannot simply opt for a
BSB so you can offer your boat for sale in US waters to US citizens in lieu of
entering and paying duty.

15. YACHT IMPORTATIONS AND THE PROCESS
VANDEGRIFT has 57 years of experience, 52 of those years right here in Port
Everglades.
We are well versed in yacht, yacht parts and aircraft importations as well as
general commodities.
Our staff is well trained and experienced.
We offer services in the following ports: Annapolis, Baltimore, Boston, Newport
RI, Norfolk Va, Los Angeles, San Diego, Ft. Lauderdale, Miami, Palm Beach,
New York, New Jersey and San Francisco.