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.
What can a FTZ be used for?
An FTZ can be utilized to inspect, repair, repack, or remove damaged & defective products before withdrawing to US commerce. Damaged & defective items can be destroyed within the zone and therefore not be subject to import duties and taxes.
What is an FTZ operator?
An FTZ administrator, or zone operator, ensures compliance with – and control over – government rules and regulations. They execute FTZ applications, bonds and activation with CBP, inventory control, as well as performing record-keeping, admissions, withdrawals, and reporting.
What is a foreign-trade zone Operator?
An Operator is a corporation, partnership, or person that operates an FTZ or FTZ subzone under the terms of an agreement with the Grantee. For CBP purposes, the term “Operator” includes a Grantee that operates its own zone.
What is not allowed in a foreign-trade zone?
In addition, the manufacture of clock and watch movements is not permitted in a zone. No retail trade of foreign merchandise may be conducted in a FTZ. However, foreign and domestic merchandise may be stored, examined, sampled, and exhibited in a zone.
What sort of activities can be done in a FTZ?
Merchandise in a zone may be assembled, exhibited, cleaned, manipulated, manufactured, mixed, processed, relabeled, repackaged, repaired, salvaged, sampled, stored, tested, displayed and destroyed. Production activity must be specifically authorized by the FTZ Board.
What advantages would a foreign-trade zone represent for an importer exporter?
Using a Free Trade Zone (FTZ) can benefit any importer or exporter – from large manufacturers to sole proprietors. Operations within an FTZ can help in significantly reducing costs from customs duties, taxes and tariffs; improve global market competitiveness; and minimize bureaucratic regulations.
Why are foreign trade zones important?
Utilizing an FTZ can significantly reduce costs from customs duties, taxes and tariffs; improve global market competitiveness; and minimize bureaucratic regulations. Outside the United States, there are many other names for FTZs, including free, foreign, or export processing zones.
What is a foreign-trade zone FTZ )? Quizlet?
foreign trade zone. a zone which incorporates many of the functions of free trade zones in general such as storage, repair, packaging assembly or manufacturing.
What is zone restricted status FTZ?
Zone Restricted Status Status of zone merchandise transferred to a zone for the sole purpose of exportation or destruction. Zone restricted merchandise cannot be changed or brought into the Customs Territory without the specific permission of the Foreign-Trade Zones Board on a case-by-case review.
What is the policy economic reason behind creating foreign-trade zone legislation?
The purpose of such zones is to help American businesses to be competitive in the global economy by reducing tariff burdens on the importation of foreign inputs and on exported finished products.