Foreign Trade Zone 136

Transcription

1 Foreign Trade Zone 136

2 Overview WHAT IS A FOREIGN TRADE ZONE? An FTZ is a restricted access site, in or adjacent to a Customs port of entry, operated pursuant to public utility principles under the sponsorship of a corporation granted authority by the Foreign Trade Zones Board and under the supervision of Customs. -19 CFR Part 400

3 Overview FTZs are treated, for the purposes of tariff laws and Customs entry procedures, as being outside the Customs territory of the United States. Foreign and domestic merchandise can be admitted into zones for operations such as storage, exhibition, assembly, manufacture and processing without being subject to formal customs entry procedures and payment of customs duties. For merchandise being removed from a zone for export, customs duties may be eliminated. Merchandise entered into the U.S. is subject to duties.

4 Overview It is the intent of the U.S. FTZ Program to stimulate economic growth and development in the United States. This program was designed to promote American competitiveness by encouraging companies to maintain and expand operations in the U.S.

5 Growth of FTZ Program General-Purpose Zones 3 Subzones 1,401 Jobs $104 Million Volume (received) 11% Domestic Material GP Zones approved, of which 171 were active 269 active manufacturing and/or production operations 340,000 Jobs $640 Billion Volume (received) 57% Domestic Material

6 Who Are The Players Grantee Entity to whom the privilege of establishing, operating, and maintaining a foreign-trade zone has been granted. Operator Entity that operates a zone or subzone under the terms of an Agreement with the Grantee. A Grantee can function as an Operator User Entity using a zone or subzone for storage, handling, or processing of merchandise. Property Owner Entity that owns the property on which FTZ designation is bestowed. 6

7 Top 15 Foreign-Status Products Received in FTZs For Warehousing/Storage Oil/Petroleum $ B Consumer Products $2.848 B Electrical Machinery $916 M Vehicles $ B Other Electronics $2.629 B Plastic/Rubber $427 M Machinery/ Equipment $6.666 B Consumer Electronics $1.241 B Beverages/Spirits $427 M Vehicle Parts $4.721 B Pharmaceuticals $1.213 B Iron/Steel $402M Textiles/Footwear $2.868 B Other Metals/Minerals $1.109 B Optical/ Photographic/ Medical Instrument $347 M

8 Top 15 Foreign-Status Products Received in FTZs For Production Oil/Petroleum $ B Petrochemicals $2.864B Other Metals/Minerals Vehicle Parts $8.749 B Ships and Boats $1.159 B Electrical Machinery $488 M $395 M Consumer Electronics $7.984 B Chemicals $965M Consumer Products $390 M Pharmaceuticals $7.133B Plastic/Rubber $818M Textiles/Footwear $195 M Machinery/ Equipment $3.317 B Other Electronics $605 M Advanced Fiber Materials $173 M

9 Grantee Sites in Brevard County

10 Example of Magnet Site 1

11 Example of Usage-Driven Site 1

12 Benefits Elimination of Duties No duties are paid on merchandise exported from a FTZ. Deferral of Duties Paid only when and if merchandise is entered into the U.S. Reduction of Duties For items manufactured within a zone, this process allows you to elect the lower duty rate of either the foreign inputs or the finished product.

13 Benefits Other Savings: Direct Delivery - Imported merchandise goes directly to FTZ rather than being subject to inspection at Port of Unlading. Weekly Estimated Entry - Only one entry is filed for all merchandise removed from FTZ during a 7-day period rather than multiple entries covering each and every shipment. Made in USA - Articles produced in an FTZ are considered products of the U.S.

14 Benefits Other Savings: Storage of Quota Merchandise - Zone Users can store Quota merchandise for a Quota Category that has been filled until Quota Category reopens. Examples sugar, dairy products no longer textiles. Re-marking or Re-labeling of Merchandise - Merchandise may be remarked or relabeled in to conform to U.S. Customs requirements. Taxes Tangible personal property imported from outside the U.S. and held in a zone, as well as that produced and held in a zone for exportation, are not subject to State and local ad valorem taxes.

15 Benefits Other Savings: Improved Inventory Control System and access to special customs procedures such as automated admissions, direct delivery and weekly entries. Ability to eliminate duty on materials that are scrapped, wasted, destroyed or consumed within a zone. Zone security must be in compliance with standards set forth by U.S. Customs and theft of merchandise located within a zone is punishable as a federal offense -- thus, zone utilization generally reduces rate of pilferage experienced by User, as well as insurance premiums paid by User.

16 Benefits Merchandise entering a zone may be: Assembled Displayed Stored Tested Repaired Manufactured Sampled Manipulated Salvaged Relabeled Mixed Destroyed Repackaged Cleaned Processed

17 Getting Started HOW CAN YOUR COMPANY USE THE FTZ? Operator User Locate within Magnet Site (5 year sunset) Apply for Usage Driven Site at your location (3 year sunset) Locate an Operator within a FTZ 136 Magnet

18 Getting Started Requirements: Meet with Grantee and/or consultant Cost/Benefit Analysis Duty Savings are greater than operational expenses. Operators or Operator/User Applications process, meet with CBP, secure a bond. Users Contract with an existing FTZ Operator to store your merchandise.

19 Fees Charged by Grantee Grantees must operate FTZ as public utility and afford all prospective participants uniform treatment. Grantees must have a published Zone Schedule with rates charged all Operators. The following are the general categories of fees charged by Grantees: FTZ Sponsorship Fee FTZ Annual Fee FTZ Production Authorization Fee FTZ Activation Fee 1

20 Getting Started Things to Remember: You do not need to be located within a Magnet Site to become an Operator. You do not need to be an Operator to enjoy the benefits of a FTZ. At least one application process is required to become an Operator. This can take up to 6 months. You must receive approval from the FTZ Board to manufacture within your zone. Significant duty savings are worth the investment of your time and effort.

21 Contact Info Shannon Feeley Asst Director, Cargo Business Development Canaveral Port Authority 445 Challenger Rd. Ste 301 Cape Canaveral, Florida PH: x211 FAX: