As used in this chapter, the following terms shall have the
meanings indicated:
ACT
The Foreign-Trade Zones Act of June 18, 1934 (48 stat. 998
- 1003; 19 U.S.C. §§ 81a through 81u), as amended by
Public Law 397, 73rd Congress, approved June 18, 1950 (15 CFR 400.2(a)].
ADMISSION SUSPENSE ACCOUNT
Merchandise received without complete U.S. Customs documentation
or which is unacceptable to the inventory control and recordkeeping
system will be recorded in a suspense account or record until documentation
is complete or the system is capable of accepting the information
[19 CFR 146.22(c)]. See "temporary deposit."
ALTERATION
A change in the boundaries of a Foreign-Trade Zones Board
approved and designated zone or subzone; designation of a separate
site of an already-activated zone or subzone with the same zone operator
at the same port; or the relocation within a Foreign-Trade Zones Board
approved and designated area of an already-activated site with the
same Zone Operator. The operator must make a written application to
the local Port Director of U.S. Customs for approval of an alteration
of an activated area, as it must be checked by Customs through its
security survey to ensure the security suitability and fitness of
the area for receipt of merchandise in zone status.
ALTERNATIVE SITE FRAMEWORK (ASF)
A three-part application that transforms a general-purpose
zone by creating a service area (Doña Ana County) where a usage-driven
site can be established in 30 days or a traditional magnet industrial
park site can be established in six to 10 months if certain criteria
are met.
ANTIDUMPING/COUNTERVAILING DUTY
FTZ Board regulations require that any merchandise admitted
to a zone that is subject to an AD/CVD order must be placed in privileged
foreign status [15 CFR 400.14(e)(1)].
APPLICANT OF RECORD
The person, firm or corporation in whose name the application
to admit merchandise into the zone (CBPF 214) is made, recognized
by U.S. Customs as having the legal right to make the application.
Evidence of this right of the applicant is the same as would be required
to establish the right to apply for release of the merchandise from
U.S. Customs with the right to make entry [19 CFR 146.32(b)(2)].
BOARD
The Foreign-Trade Zones Board created by the Act to carry
out the provisions thereof. The Foreign-Trade Zones Board shall consist
of the Secretary of the Department of Commerce, who shall be the chair,
and the Secretary of the Treasury [15 CFR 400.2(d)].
BULK
In trade, a product, or a mass (of a product), which is not
packaged, bundled, bottled, or otherwise packed, so that it is designated
as bulk or bulk merchandise.
CONDITIONALLY ADMISSIBLE MERCHANDISE
Merchandise that may be admitted to the zone or be imported
into the U.S. under certain conditions. Merchandise subject to antidumping
and countervailing duty, subject to Foreign-Trade Zones Board grant
restrictions, or merchandise transferred from a bonded warehouse are
examples of conditionally admissible merchandise for admission to
the zone. Merchandise which is subject to permits or licenses (i.e.,
FDA-controlled merchandise, certain firearms, motor vehicles, etc.)
or merchandise which may be reconditioned to bring it into compliance
with the laws administered by various federal agencies are examples
of conditionally admissible merchandise for import. See Sections 6.3,
6.7(g), and 11.5, U.S. Customs FTZ Manual.
CONTAINER
A shipping device; a non-self-propelled, rigid, nondisposable,
returnable, cargo-carrying device, with or without wheels, enclosed
or otherwise, and includes any container, trailer, chassis platform,
specially constructed skid, pallets, mount, or combination thereof,
and which is designed to be transported integrally as one unit directly
and mechanically between vessels and piers so as to eliminate intermediate
rehandling and/or storage of cargo.
CUSTOMS AND BORDER PROTECTION FORM 214A
Application for Foreign-Trade Zone Admission and/or Status
Designation. This form is the pink or salmon-colored statistical copy
of the CBPF 214 utilized for Bureau of Census reporting purposes.
Electronic filing may be made to Census with filing the e-214. If
the admission is not filed electronically, the CBPF 214A is required
to be submitted to U.S. Customs.
CUSTOMS TERRITORY
The territory of the United States in which the general tariff
law of the United States applies but which is not included in any
Foreign-Trade Zone.
DOMESTIC MERCHANDISE
Domestic-sourced or foreign-sourced previously duty-paid
merchandise. See "status of merchandise" herein.
FOREIGN MERCHANDISE
Imported merchandise that has not been properly released
from U.S. Customs custody in the Customs territory of the United States.
See "status of merchandise" herein.
FUNGIBLE MERCHANDISE
Merchandise that for commercial purposes is identical and
interchangeable in all situations.
GRANTEE
The grantee of Foreign-Trade Zone No. 197 is the Board of
County Commissioners of Doña Ana County, an organization to
which the privilege of establishing, operating, and maintaining a
foreign-trade zone has been granted by the Foreign-Trade Zone Board.
INTERIM PRODUCTION APPROVAL
Existing zone site and subzone may secure interim production
approval with Customs concurrence and approval by the Foreign-Trade
Zones Board. This does not require the entire four months that a normal
Production Notification Application requires. However, the Customs
letter must indicate that the operator is activated or could be activated
soon.
IN-TRANSIT MERCHANDISE
Includes all foreign merchandise transported into and out
of the United States, whether in and out of the same port or across
the country to another port, with or without transshipment, warehousing,
breaking bulk, or change in mode of transportation, which originated
in one foreign country and is destined at the time of the original
shipment to another foreign country. Its distinctive feature is that
it is being transported, from one foreign country through the United
States to another foreign country, under a through bill of lading
or other documentation for a completed journey.
INVENTORY RECORDS
A.
ZONE LOT NUMBER (ZLN)A number assigned to the unit or units of goods (zone lot) for which a separate record and account is to be kept by the zone operator or zone user. The merchandise must be physically segregated and marked by lot at all times [19 CFR 146.37(a)(1) and (d)].
B.
UNIQUE IDENTIFIER NUMBER (UIN)Numbers, letters, or combination of both (alphanumeric) that identifies merchandise admitted to a zone. It is fungible material typically identified by a part number, model number, style number, SKU, etc. This number may be used for control and accounting of the goods. FIFO (first in, first out) and FOFI (foreign first) inventory relief methods have been authorized by the U.S. Customs [19 CFR 146.37(a)(2) and (d)]. Generally, a FIFO system is used for UIN activity.
LEASE
The document of agreement entered into between the owner
or lessor of the property and the lessee for use of space within the
Foreign-Trade Zone.
MAGNET SITE
Sites intended to attract multiple potential FTZ operators/users.
MANIPULATION
Breaking up, repacking, assembling, distributing, sorting,
grading, cleaning, mixing with foreign or domestic merchandise, or
other processing which does not constitute manufacturing.
MANUFACTURING
This is the old term used by the Foreign-Trade Zones Board
for activity involving the substantial transformation of a foreign
article resulting in a new and different article having a different
name, character, use, and HTS classification. It is now referred to
as "production." Authority for such activity in a zone must be secured
from the Foreign-Trade Zones Board and authorized on a CBPF 216 by
the U.S. Customs.
MERCHANDISE
Includes goods, wares and chattels of every description except
prohibited merchandise. (Building materials, production equipment,
and supplies for use in operation of a zone may not be considered
"merchandise.")
NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) DUTY DEFERRAL PROGRAM
The NAFTA Duty Deferral Program is currently in effect for
trade between the United States and Canada/Mexico. Under this program,
all foreign-sourced, non-NAFTA-qualified merchandise used in manufacturing
and production in a foreign-trade zone, whether or not the finished
product is NAFTA-qualified, when exported to Canada/Mexico must be
the subject of a special NAFTA "08" code Customs entry and be subject
to U.S. Customs duties, applicable antidumping/countervailing duties,
and merchandise processing fees.
OFIS
The Online FTZ Information System that includes information
on each zone. It can be accessed through the FTZ Board website. All
annual reports are now filed electronically through OFIS.
OPEN OR YARD STORAGE
The keeping of merchandise on open space within the fenced-in
area of the Foreign-Trade Zone where merchandise not requiring weather
protection may be stored.
OPERATING AGREEMENT
The agreement between the zone operator and the zone user,
or the zone grantee and the zone operator, describing rights, responsibilities,
and financial considerations.
PRODUCTION
Traditional manufacturing activity and "kitting" activity
where the new HTSUS classification applies to the finished product.
The Foreign-Trade Zones Board uses this term to cover both manufacturing
and processing activity.
PROHIBITED MERCHANDISE
Merchandise, the importation of which is prohibited by law
on grounds of public policy or morals, or any merchandise that is
excluded from a zone by order of the Foreign-Trade Zones Board. Books
urging treason or insurrection against the U.S., obscene pictures,
and lottery tickets are examples of prohibited merchandise. Also,
certain types of operations involving the following merchandise are
prohibited: tobacco, cigars, cigarettes and cigarette papers and tubes
(26 U.S.C. §§ 5701 through 5706); firearms (26 U.S.C. §§ 4181
through 4182/5811); distilled spirits, alcohol, wine and beer (26
U.S.C. §§ 5001 through 5008/5010); sugar (26 U.S.C.
§§ 4501 through 4503); Watch movements (19 U.S.C. §§ 1367
through 1368); bicycle parts were prohibited for a limited time period
[19 U.S.C. § 81b(c)] until December 31, 1992; and retail
sales in a zone [19 U.S.C. § 81(o)(d) and CR 19 CFR 146.14].
QUANTITY
The numerical count of the units composing a shipment of
merchandise.
QUOTA
A set limit of a given item that may be imported during a
set period of time (normally one year). Tariff rate quota only limits
the quantity that may be imported at the lower rate; imports above
the quota quantity would be at a higher rate of duty.
RE-EXPORTS or RESHIPMENTS
Merchandise from one foreign country initially destined to
the United States that, after being unladen, stored, and/or manipulated
or manufactured in this country, is transported under a new bill of
lading or other new documentation to another foreign country. Generally,
it includes all merchandise of foreign origin which has not been so
manipulated or manufactured as to be deemed a product of the United
States, and which has not been released from Customs custody into
Customs territory.
REGULATIONS
All operations within the foreign-trade zone are subject
to the Foreign-Trade Zones Board regulations, 15 CFR Part 400; and
U.S. Customs regulations, 19 CFR Part 146. Imports and exports may
also be governed by the regulations or guidelines of other federal
agencies. All products to be admitted to a foreign-trade zone must
be reviewed for potential compliance issues.
RESTRICTED MERCHANDISE/OPERATIONS
Merchandise which may not be authorized for delivery from
Customs custody without a special permit, or a waiver thereof, by
an agency of the U.S. government. Also, the Foreign-Trade Zones Board
and U.S. Customs have restricted certain operations in the past involving
the following products: steel, apparel/textiles, television tubes,
auto parts, milk, sugar, orange juice, printers ink, alcohol/gasohol,
oil refining, tires, chain saws, silicon metals, and golf carts. The
restrictions may vary on a case-by-case basis.
SEQUENTIAL NUMBER
The control number or the zone admission number on the CBPF
214 in Block No. 6. The zone operator sets the number structure. It
is not the zone lot number or the UIN.
SERVICE AREA
The area including Doña Ana County, where usage-driven
or magnet sites can be established under ASF rules.
STATUS OF MERCHANDISE
A.
DOMESTIC MERCHANDISEMerchandise produced in the U.S., not exported therefrom, and on which all internal revenue taxes, if applicable, have been paid; and imported merchandise properly released from Customs' custody on which all applicable duties and taxes have been paid (19 CFR 146.43).
B.
NONPRIVILEGED FOREIGN MERCHANDISEForeign merchandise or non-tax-paid domestic merchandise upon which the duty and applicable taxes will be determined at the time the merchandise enters the Customs territory of the United States from the zone for consumption (19 CFR 146.42).
C.
PRIVILEGED FOREIGN MERCHANDISEForeign merchandise or non-tax-paid domestic merchandise upon which the duty and applicable taxes have been determined at the time this status is approved. The determined duty rate and taxes are not subject to future fluctuation. If merchandise is subject to antidumping or countervailing duties, and therefore placed in privileged foreign status, the merchandise will be entered under the HTSUS rate of duty in effect at the time of admission to the zone; however, the estimated AD/CVD rates are those in effect at the time of withdrawal from the zone. Merchandise subject to antidumping or countervailing duties, that must be placed in privileged foreign status pursuant to Section 400.14(e)(2), Foreign-Trade Zones Board regulations, may be exported duty-free except to North American Free Trade Agreement countries. Once established, privileged foreign status cannot be changed. If merchandise has already been admitted to a zone with nonprivileged foreign status, privileged foreign status may be obtained by filing a CBPF 214 and related documents. Application for this status, however, must be filed prior to manipulation or manufacture in the zone (19 CFR 146.41).
D.
ZONE-RESTRICTED MERCHANDISEMerchandise admitted to a zone for the sole purpose of exportation or destruction. Merchandise with zone-restricted status may not enter U.S. Customs territory for consumption except when approved by the Foreign-Trade Zones Board. No manufacturing or processing may occur with merchandise that is in zone-restricted status. Drawback may be filed immediately upon merchandise admission (19 CFR 146.44).
STORAGE
The keeping of merchandise in or upon the premises within
the foreign-trade zone. Covered storage means keeping within a covered
and enclosed structure affording weather protection. The term "storage,"
without other designation, ordinarily implies covered storage.
SUBZONE
A special purpose zone established as part of a zone project
for a limited purpose that cannot be accommodated within an existing
zone. Foreign merchandise may be admitted to the area without the
payment of U.S. Customs duties and taxes or the imposition of U.S.
quotas; domestic merchandise is allowed in the area. No U.S. Customs
duties, taxes, or quotas apply if the merchandise is exported; U.S.
Customs duties, taxes and quotas are applicable if the merchandise
is imported into U.S. Customs territory either on the basis of the
imported materials or the finished product depending on the zone status
designation. For new subzones if a company wishes to have production
authority it must request approval of a Production Notification Application
which can require four months unless U.S. Customs will support an
interim approval. A usage-driven site may also be called a subzone
if requested during the application process.
SUNSET PROVISION
Magnet sites have a rolling five-year sunset provision during
which at least a portion of the magnet site must be activated, while
a usage-driven site must demonstrate actual zone activity within three
years or lose zone status.
TEMPORARY DEPOSIT
Merchandise admitted to a foreign-trade zone under 19 CFR
146.35, when information or documentation is insufficient in order
to complete the CBPF 214. The documentation and time period restraints
under this provision are avoided if the admission suspense account
procedures in 19 CFR 146.22(c) are followed. See "admission suspense
account."
TRANSSHIPMENT MERCHANDISE
Foreign merchandise which enters and leaves the United States
through the same port, being transferred from one vessel to another
directly or by way of a foreign-trade zone or Customs bonded warehouse.
The term is particularly applied to such merchandise transferred through
a foreign-trade zone.
UNIT OF QUANTITY
The customary grouping of a commodity as a unit to indicate
the medium or method of measure.
UNITED STATES
The 50 states, the District of Columbia, and Puerto Rico
that constitute the Customs territory of the U.S. The term "United
States" includes all territories and possessions of the United States,
except the Virgin Islands, American Samoa, Wake Island, Midway Islands,
Kingman Reef, and the Island of Guam, which are not considered part
of U.S. Customs territory.
USAGE-DRIVEN SITE
Sites designated to meet a specific operator's user's
present need for FTZ designation; usage-driven sites cannot be used
by another entity.
WAREHOUSE
A covered and enclosed structure, affording weather protection,
used primarily for short- or long-term storage of merchandise, and
often containing business offices. In a foreign-trade zone, it also
is used for manipulation, manufacture, and exhibition of merchandise.
WEIGHT
The gross weight of the merchandise, including all containers,
except as noted to the contrary.
ZONE ADMISSION NUMBER
The control number or sequential number on the CBPF 214 in
Block No. 6. The zone operator sets the number structure.
ZONE OPERATOR
The foreign-trade zone may be managed by the grantee, a firm
that oversees one or multiple zone users, or each firm may be its
own foreign-trade zone operator. For the purposes of this schedule,
the term "zone operator" shall apply to both general-purpose zones
and subzones. The zone or subzone may be an organization, corporation,
partnership, or person that operates under the terms of an agreement
with the zone grantee. There may also be multiple zone operators operating
under the terms of agreement with the zone grantee.
ZONE USER
A person or firm using a zone for storage, handling or processing
of merchandise. The zone operator may authorize a zone user to maintain
its individual inventory control and recordkeeping systems and procedures
manual; however, the zone operator will remain responsible to Customs
and liable under its bond for supervision, defects in, or failures
of the systems unless the zone user posts its own FTZ operator's
bond and becomes a zone operator.
ZONE YEAR
Each zone operator may choose its own zone year. December
31 is the year-end for Foreign-Trade Zones Board annual report purposes.