QUESTION: My company is about to become users of someone else’s ftz. Do we need to get an additional bond—on top of one we already have for imports—for our entries into and out of FTZ? **************** Answers: The best person to ask is your bonding company. They know your business best and you should openly […]
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: If we brought goods into our FTZ (properly admitted, etc) but then exported them without any removal paperwork (7512, etc), what’s our penalty exposure? Just $1000 or do we have other things to be wary of? ========== Answers: You could be sited for liquidated damages for unauthorized release, which may be mitigated down. It […]
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? ========== Answer: Yes – you can go to the FTZ Board website – and to the OFIS section, determine what county your zone will be in and select the proper zone/grantee, […]
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: If we brought goods into our FTZ (properly admitted, etc) but then exported them without any removal paperwork (7512, etc), what’s our penalty exposure? Just $1000 or do we have other things to be wary of? ========== Answers: You could be sited for liquidated damages for unauthorized release, which may be mitigated down. It […]
QUESTION: We have 2 distribution centers within 30 miles of each other, and both are considered to be one FTZ. Each DC has a different site number, but still only have one zone number. Many of our ocean containers are split between the 2 DC’s, and we have permission from CBP to unload at the […]
QUESTION: We have a contract with a client to provide equipment for their refinery upgrade. The contract stipulates that we are to be the IOR for the equipment purchased. The client established the refinery site as a production FTZ after the contract was issued so the contract does not address this situation nor was the […]
QUESTION: Do any of the members have a detailed checklist to follow for FTZ Deactivation? I believe I know the basics: notify Port Director, Move all Goods out or to Domestic Status with Consumption Entry, Perform basic Final Accounting, Remove signs, Deactivate E-Mails, Terminate FTZ Bond, Allow CBP to do final walkthrough. Am I missing […]
QUESTION: My FTZ subzone grant requires everything I admit to my subzone be admitted as Privileged Foreign. I do that, every time. But the annual report to the FTZ Board asks for Beginning Value-Domestic Status as well. I don’t have any goods “admitted” with that status, but I do have many goods physically in the […]
QUESTION: I operate an FTZ subzone and one of my customs brokers just told me this concerning goods being admitted/leaving my Zone: As long as the goods go from the Port directly to my Zone, we can use my FTZ bond (Instead of requiring use of a trucking company with a transportation bond) to cover […]
QUESTION: After goods are admitted into my FTZ subzone, can I sell them to a third party? If so, whose responsibility is it to “remove” them from the FTZ? ========== Answers: Retail trade within an FTZ is prohibited. You can however do a “title transfer” to sell something to a third party. This is especially […]
