Question: Hello, I’ve just been handed responsibility for operating our FTZ. As someone who’s been doing compliance for awhile, I know enough to know I know nothing about operating an FTZ. What do I need to be reading right now so I understand enough to attempt to avoid a bunch of cleaning up once I […]
Question: Good day, is there a site to get an overview of Free Trade Zones/Economics zones around the world? I need general information on entities that regulate Free Trade Zones abroad, Regulations proceedings to activate and such. Answer 1: There is a World Free Zones Organization, see worldfzo.org. They have a big number of members, […]
Question: Would anyone have a copy of a Blanket 216 for manufacturing FTZ that they would be willing to share? Or rather the verbage for block 5? Answer 1: The standard verbiage that we use is “permission is requested to open and inspect packages, sort, and xxxxxxxx ( describe the production that your company has […]
QUESTION: How long does it take to get approval from customs for a bonded warehouse? For an FTZ? If I bring raw materials into a bonded warehouse or FTZ and manufacture a new article of commerce within the bonded warehouse or FTZ, (substantial transformation), (not simple assembly, but real manufacturing) what is the origin of […]
QUESTION: Do FTZs offer any relief whatsoever from 301 duties? I keep finding this language, first published by CBP, and then reproduced by several law and consulting firms: Per the Federal Register Notice published by the USTR, any product covered by the Section 301 remedy … only may be admitted as “privileged foreign status” as […]
QUESTION:I bring goods into my subzone and manufacture them into a new product. While still in the subzone, they are sold EXW to a customer. So, whose responsibility is it to formally remove them from the zone and file the 7512? Mine, right? =========== Answers: Yes—you control your zone, you need to make you’re a) inputs (what admitted […]
QUESTION: Is there anywhere with a general overview stating the costs of applying for a FTZ, yearly costs/fees to operate/maintain the FTZ once approved? %%%%%%%%%% ANSWERS: Once an FTZ Project receives approval for operations from CBP and the FTZ Board, annual operations costs that need to be considered are as follows: The cost of an […]
QUESTION: CBP does not allow products made with non-originating materials in an FTZ to qualify for USMCA into the US even if it meets the ROO. “Under NAFTA rules of origin, non-originating goods used in production processes in foreign trade zones (FTZ) could not qualify as originating as a result of that processing. See 19 […]
QUESTION: We have product from list 4A in our FTZ under privileged status as required by the sec 301 requirements, meaning that at the time of consumption we will be paying the 15% even if after February 14th . The exact language is for the lower duty rate is , “entered for consumption, or withdrawn […]
QUESTION: We have a product that is made from a direct material subject to ADD. The ADD is incredibly prohibitive to our business. Approximately 1/3 of all of our finished product that uses this direct material is subsequently exported. I’m aware that imports of ADD/CVD goods into an FTZ are entered under privileged foreign status […]
QUESTION: For direct delivery FTZ imports, what is the best practice and/or industry standard for reporting manifest discrepancies (overages and shortages) found upon receipt? When is a manifest discrepancy report appropriate, what should it look like, how should it be delivered and to whom? Is there a standard format? FTZ Manual 10.4(b) references CBP Directive […]
QUESTION: Can title transfers from one IOR to another be completed within the same zone? What steps would one take to ensure inventory reconciliation, and what would be required for CBP if the goods are not leaving the zone (reporting)? Would it be considered a domestic move and not require an entry? Or, if CBP […]
