Foreign Trade Zones

Questions and answers about Foreign Trade Zones

  • MOVING LCL INTO AN FTZ

    QUESTION: What is the process of moving LCL loads into a Foreign Trade Zone (FTZ) from arrival at the port of import to delivery to the FTZ? Routing could be via rail or truck. Understand that it needs to move in bond, but how is LCL segregated from non-bonded merchandise? ========== Answers: You would on […]

  • FTZ manual needed

    QUESTION: New job, this company has an FTZ but no FTZ manual. Any good FTZ manual templates out there? My need is semi-urgent. %%%%%%%%%% ANSWERS: I would poke around somemore and even reach out to Customs – at some point a manual would have been submitted to Customs as a part of the activation process. […]

  • DC set up for FTZ activity

    QUESTION: Our company will be setting up a DC on the west coast. This DC will feed our factory which is a few miles away. The plan is to set up an FTZ at the factory to take advantage of a lower duty rate on transformation. However, since the imported material will not be stored […]

  • FTZ APPLICATION

    QUESTION: Does anyone in the membership have any pointers when applying for an FTZ designation? I’m only speaking of designation and not activation. ========== Answers: Hi There, Designation can be done through an application on the FTZ Board website. If you are considering designation, please also consider a solid plan for activation and operation. ========== […]

  • FTZ MANUFACTURED WEIGHT

    QUESTION: For items manufactured in an FTZ that contain Privileged Foreign, Non-Privileged Foreign, and Domestic status components, should the reported weight (on the 7501 line for the manufactured item) be calculated using the finished good weight, or should it be calculated using the Non-Privileged Foreign status components that underwent duty invert for that line? It […]

  • FTZ PHYSICAL BOUNDARIES

    QUESTION: Would appreciate feedback on experience with how FTZ activated space is controlled/designated in different FTZ’s around the nation. Some FTZ’s require fencing (sometimes all the way to the ceiling and comporting with Bonded Warehouse requirements) surrounding the “activated” areas. If the FTZ area expands/contracts modifications/movement of the fencing is required. Other FTZ’s rely more […]

  • FTZ AND 301 DUTIES

    QUESTION: Our US supplier group assists our Mexican sister company manage its suppliers. Within the last six months, the US supplier attempted to use an FTZ strategy to avoid substantial 301 tariffs – but somehow didn’t import correctly, so got charged the tariffs, anyway. I was reading up on it since the US company doesn’t […]

  • FTZ release date and the 10 day window for the entry summary

    QUESTION: Has anyone received clarification from CBP about whether or not the 10 day window begins, for FTZ estimates, based on the date of the 1 USG message, or the date shown per ACE CATAIR to the right. We’re trying to confirm with our broker which date starts the 10 day window. This is a […]

  • FTZ Security Requirements

    QUESTION: Does a CTPAT audit suffice as a security audit for a foreign trade zone in the US? Does the FTZ need to be CTPAT certified prior to operating? Thank you. ========== Answers: Not sure where you are coming up with a “Security Audit”. A review of Security is normally done by CBP prior to […]

  • Customs bonded warehouse to a FTZ

    QUESTION: I cannot find a FTZ operator in the area I need one. Can I ship to a Customs bonded warehouse located in the port area, unload the containers in the bonded area, ship on bonded trucks to a FTZ several states away? If this can be done, how? Under IT to the warehouse then […]

  • SEC. 321 RELEASE FROM FTZ

    QUESTION: Does anyone in the membership know if Section 321 entry can be claimed on withdraws from an FTZ? If I understand correctly, most Section 321 entries are filed by carriers. In case of FTZ, normally who files for Customs release? FTZ operator or carrier? Is ACE ready for brokers to file Section 321 entries? […]

  • FTZ DUTY SAVINGS

    QUESTION: The question is at too high a level to provide a reasonable answer.  It really depends. If you are doing assembly or manufacturing and your end product will benefit from a tariff shift. (obviously in your favor) then there can be a case made on that value.  There is also the savings of MPF which […]