Free Trade Zones

  • ANSWERS TO Question on Bonded warehouses and FTZ’s

    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 […]

  • Answers to QUESTION ON SEC 301 AND FTZ SAVINGS

    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 […]

  • Answers to QUESTION ON FTZ WITHDRAWALS

    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 […]

  • ANSWERS TO Question on FTZ Overall Costs

    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 […]

  • Answers to QUESTION ON FTZ AND USMCA SHIPMENTS

    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 […]

  • FTZ 301 AND WITHDRAW UNDER LOWER DUTY RATE

    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 The exact language is for the lower duty rate is , “entered for consumption, or withdrawn […]

  • ADD goods exported from FTZ’s

    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 […]

  • FTZ Manifest Discrepancy Reporting

    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 […]

  • FTZ title transfers between IORs in the same zone

    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 […]

  • FTZ Admission/Arrival/Concurrence processes

    QUESTION: I would like clarification from the membership on the timing of the filing process when bringing goods into an FTZ.  I see 2 scenarios: Standard Admission Issue e214 and ePTT simultaneously CBP approves e214 Goods received by Operator who issues a receiving report Concurrence of the e214 if no receipt discrepancies Concurrence with quantity discrepancies  […]