How do you become a foreign trade zone?

How do you become an FTZ operator?

There are three phases to the application process for becoming an FTZ Operator:

  1. Phase 1: Application with PortMiami.
  2. Phase 2: Approval from the Foreign Trade Zone Board (FTZB) and FTZ Site Operator Agreement.
  3. Phase 3: Activation from Customs and Border Protection and Grantee Approval.

How does a foreign trade zone work?

Foreign-Trade Zones allow companies to bring items onto US soil without paying the duty tax, allowing them to store these goods free of tariff charges, or use parts to manufacture a finished product that can then be exported without the US import/export surcharges.

What is a designated foreign trade zone?

While there is no precise definition of what constitutes a foreign trade zone (FTZ), the term generally refers to a specific location within a country that is officially designated for eligibility for tariff and tax exemptions with respect to the purchase or importation of raw materials, components or finished goods.

How many foreign trade zones are there in the US?

There are over 230 foreign-trade zone projects and nearly 400 subzones in the United States.

Who regulates FTZ?

Foreign-Trade Zones (FTZ) are secure areas under U.S. Customs and Border Protection (CBP) supervision that are generally considered outside CBP territory upon activation. Located in or near CBP ports of entry, they are the United States’ version of what are known internationally as free-trade zones.

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What is a grantee in FTZ?

The principal responsibilities of a Grantee are to: (1) Provide and maintain facilities in connection with a zone; (2) Operate the zone as a public utility with fair and reasonable rates and charges for all zone services and privileges, and afford to all who apply for the use of the zone and its facilities and provide …

What are the benefits of a FTZ?

Below are some benefits of using an FTZ.

  • Deferral, reduction, or elimination of certain duties. …
  • Relief from inverted tariffs. …
  • Duty exemption on re-exports. …
  • Duty elimination on waste, scrap, and yield loss. …
  • Weekly entry savings. …
  • Improved compliance, inventory tracking, and quality control. …
  • Indefinite storage.

Which activities are allowed in an FTZ?

Here is a list of activities that are permitted in an FTZ:

  • Product Assembly.
  • Product Testing.
  • Sampling.
  • Package Relabeling and Repackaging.
  • Product Manufacturing.
  • Product Storage.
  • Merchandise Consolidation.
  • Breakdown of shipments into separate deliveries.

How many FTZ are there in Canada?

There are currently nine Foreign Trade Zone Points in Canada: Windsor–Essex. Edmonton’s Port Alberta.

What kind of activities take place in a foreign trade zone?

What can be done in a Foreign-Trade Zone? Any merchandise that is not prohibited from entry into the U.S. may generally be admitted into a Zone. Manufacturing, processing and any activity that results in a change of the tariff classification can occur in a Zone but must be specifically approved by the FTZ Board.