How do you become an FTZ operator?
- An operator must schedule a site visit first to gain consent from CBP for their proposed site to operate as an FTZ.
- The operator then completes the online application and sends it to The Port Authority of NY & NJ, along with the CBP concurrence letter.
What does a free trade zone do?
The primary purpose of a free-trade zone is to remove from a seaport, airport, or border those hindrances to trade caused by high tariffs and complex customs regulations.
What types of operations can be performed in an FTZ?
FTZ designated areas are the U.S. version of are known internationally as Free Trade Zones. Foreign and domestic merchandise may be moved into an FTZ for operations, not otherwise prohibited by law, including storage, exhibition, assembly, and processing. All FTZ activity is subject to public interest review.
What companies use free trade zones?
Multinational companies using FTZs include BMW, Mercedes Benz and Nissan, Caterpillar, John Deere, and GE. Name-brand retailers operating distribution centers in FTZs include Crate and Barrel, Cabela’s, Columbia Sportswear, Home Depot and Limited Brands.
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.
What is an FTZ 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 an FTZ magnet site?
A magnet site is a site designed to cover multiple users who will all independently operate on one FTZ site. A usage- driven site covers only one user, regardless of whether that user operates on a site with other businesses.
Can free trade zones be public or private?
FTZs can be operated by both public and private entities. Merchandise of every description may be held in FTZs without being subject to Customs duties or other added value taxes.
What is a free-trade zone warehouse?
A free trade zone (FTZ) warehouse is a facility in an area the U.S. government classifies as being outside of U.S. customs territory, despite a location within the borders of the United States. FTZs are usually located near Customs and Border Protection ports of entry.
What is free zone in Malaysia?
A Free Zone in Malaysia is an area that has been declared to be one by the government under the Free Zones Act 1990. The Free Zone will serve as a designated area for businesses to carry out commercial and industrial activities under the supervision of the Ministry of Finance.
What are USA free trade zones?
A class of special economic zone, USA Free Trade Zones are also commonly referred to as “Foreign Trade Zones”. Businesses receive multiple benefits of USA free trade zones. Within its premises, businesses get to enjoy customs duty exemption for their goods. Generally organized around major seaports, it also holds many trade advantages.
Who is in charge of the foreign trade zones?
The foreign trade zones are under the charge of the United States Customs and Border Protection (CBP). The CBP must ensure proper enforcement of importing laws and also monitor the activities in these trade zones. What is a FTZ subzone?
What are the benefits of the Foreign Trade Zone program?
Importing components or raw materials into the Foreign Trade Zone also does not require the payment of any Customs duty. The USA Foreign Trade Zone program allows companies to hold their goods indefinitely in the zone.
What is a zone operator or restricted status?
•Zone Operator – A corporation, partnership, or person that operates within a site or subzone under the terms of an agreement with the zone grantee (or third party on behalf of the grantee) with the concurrence of the Port Director of CBP. •Zone Restricted Status – Merchandise in this status is to be exported or destroyed.