[HISTORY: Adopted by the Board of County
Commissioners of Doña Ana County 8-26-2014 by Res. No. 2014-86.[1]. Amendments noted where applicable.]
Attachment 1 - Appendix A
Attachment 2 - Zone Schedule Corrections ListAttachment 3 - Foreign-Trade Zone 197 Map
Attachment 2 - Zone Schedule Corrections ListAttachment 3 - Foreign-Trade Zone 197 Map[1]
Editor's Note: This resolution also repealed former Ch. 213,
Foreign-Trade Zone, adopted 10-23-2007 by Res. No. 2007-126, as amended.
A.
Pursuant to a grant issued by the Foreign-Trade Zones Board, Washington
D.C., as Board Order No. 665 on November 26, 1993, the Board of County
Commissioners of Doña Ana County, under provisions of the Foreign-Trade
Zones Act (19 U.S.C. §§ 81a through 81u), Foreign-Trade
Zone No. 197, has issued the following Zone Schedule on rules, regulations,
rates and charges. The Board of County Commissioners of Doña
Ana County received approval of an Alternative Site Framework Application,
by the Foreign-Trade Zones Board on June 30, 2014, as FTZ Board Order
No. 1942.
B.
Foreign-Trade Zone No. 197, which is operated as a public utility
under Foreign-Trade Zones Board Regulations, has offices located at
845 North Motel Boulevard, Las Cruces, New Mexico 88007. The zone
has adequate access to electric power, water, waste disposal, communications,
and access to all modes of transportation. The buildings are equipped
to provide private lease storage, manipulation, manufacturing, and
office space.
C.
The zone has been expanded pursuant to Board Order No. 1536.
D.
The Zone consists of the following sites:
|
Site Number
|
Site Name and Address
|
Acreage
| |
|---|---|---|---|
|
1
|
Santa Teresa Business Center
2700 Airport Road
Santa Teresa, New Mexico (Doña Ana County)
|
489
| |
|
2
|
West Mesa Industrial Park
350 Alliance Drive
Las Cruces, New Mexico (Doña Ana County)
|
206
| |
|
3
|
Santa Teresa Bi-National Park
401 Avenida Ascension
Las Cruces, New Mexico (Doña Ana County)
|
304
| |
|
4
|
Santa Teresa Airport Industrial Park
8016 Airport Road
Santa Teresa, New Mexico (Doña Ana County)
|
200
| |
|
5
|
Santa Teresa Logistics Park
4751 Avenida Creel
Santa Teresa, New Mexico (Doña Ana County)
|
208
|
E.
Copies of this Zone Schedule are on file with the Foreign-Trade Zones
Board, Washington, D.C., and U.S. Customs Port Director in Santa Teresa,
New Mexico, and are available at the general offices of Foreign-Trade
Zone No. 197 upon request at a price of $5 per copy. There is no charge
for an electronic version of the Zone Schedule.
F.
More detailed guidance on U.S. Customs issues may be found in U.S.
Customs FTZ Manual. A copy is maintained for review by the Foreign-Trade
Zone grantee.
G.
Communications should be addressed to:
|
Grantee Office:
| |
|
Board of County Commissioners of Doña Ana County (Doña
Ana County)
| |
|
845 North Motel Boulevard
| |
|
Las Cruces, New Mexico 88007
| |
|
Attn: Ms. Janine Divyak, AICP
| |
|
575-525-6130
| |
|
575-525-6131 (FAX)
| |
|
janined@donanacounty.org
|
As used in this chapter, the following terms shall have the
meanings indicated:
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)].
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."
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.
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.
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)].
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)].
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)].
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.
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.
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.
Application and permit to admit merchandise into a Foreign-Trade
Zone and/or designation of zone status.
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.
Application and permit for the manipulation, manufacture,
exhibition, temporary removal or destruction of merchandise within
a Foreign-Trade Zone.
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-sourced or foreign-sourced previously duty-paid
merchandise. See "status of merchandise" herein.
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.
Merchandise that for commercial purposes is identical and
interchangeable in all situations.
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.
The ten-digit number used to identify all imported and exported
merchandise. The complete text is available from the U.S. International
Trade Commission on its website.
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.
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.
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)].
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.
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.
Sites intended to attract multiple potential FTZ operators/users.
Breaking up, repacking, assembling, distributing, sorting,
grading, cleaning, mixing with foreign or domestic merchandise, or
other processing which does not constitute 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.
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.")
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.
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.
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.
The agreement between the zone operator and the zone user,
or the zone grantee and the zone operator, describing rights, responsibilities,
and financial considerations.
The Port Director of U.S. Customs located in Santa Teresa,
New Mexico, or his/her representative.
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.
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].
The numerical count of the units composing a shipment of
merchandise.
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.
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.
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.
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.
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.
The area including Doña Ana County, where usage-driven
or magnet sites can be established under ASF rules.
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).
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).
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).
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).
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.
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.
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.
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."
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.
The customary grouping of a commodity as a unit to indicate
the medium or method of measure.
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.
Sites designated to meet a specific operator's user's
present need for FTZ designation; usage-driven sites cannot be used
by another entity.
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.
The gross weight of the merchandise, including all containers,
except as noted to the contrary.
The control number or sequential number on the CBPF 214 in
Block No. 6. The zone operator sets the number structure.
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.
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.
Each zone operator may choose its own zone year. December
31 is the year-end for Foreign-Trade Zones Board annual report purposes.
A.
Foreign-trade zones (zones) are restricted-access sites in or near
ports of entry, which are licensed by the Foreign-Trade Zones Board
and operated under the supervision of U.S. Customs. (See 19 CFR Part
146.) Authority for establishing these facilities is granted to qualified
corporations. Applications submitted to the Foreign-Trade Zones Board
for grants of authority must show the need for zone services and a
workable plan that includes suitable facilities and financing.
B.
Zones are operated under public utility principles. Zone grantees
usually contract with private firms to operate facilities and provide
services to zone users. Zones have as their public policy objective
the creation and maintenance of employment through the encouragement
of operations in the United States that, for Customs reasons, might
otherwise have been carried on abroad. The objective is furthered
particularly when zones assist exporters and re-exporters, and usually
when goods arrive from abroad in an unfinished condition for processing
here rather than overseas.
C.
Foreign and domestic merchandise may be moved into zones for operations
not otherwise prohibited by law involving storage, exhibition, assembly,
production or other processing. The usual formal Customs entry procedure
and payment of duties is not required on the foreign merchandise unless
and until it enters Customs territory for domestic consumption, in
which case the importer ordinarily has a choice of paying duties either
on the original foreign material or the finished product. Quota restrictions
do not normally apply to foreign goods stored in zones, but the Foreign-Trade
Zones Board can limit or deny zone use in specific cases on public
interest grounds. Domestic goods moved into a zone for export may
be considered exported upon entering the zone for purposes of excise
tax rebates and drawback. "Subzones" are a special-purpose type of
ancillary zone authorized by the Foreign-Trade Zones Board, through
grantees of public zones, for operations by individual firms that
cannot be accommodated within an existing zone when it can be demonstrated
that the activity will result in a significant public benefit and
is in the public interest. Foreign merchandise and domestic merchandise
for export in a zone are exempt from state and local ad valorem taxes
[15 CFR 400.1(c)].
D.
More detailed information is contained in the Foreign-Trade Zones
Act, 19 U.S.C. § 81a-u; Foreign-Trade Zones Board regulations,
15 CFR Part 400; and U.S. Customs regulations, 19 CFR Part 146.
A.
Application and interpretation of Foreign-Trade Zone No. 197 Zone
Schedule. The rules, regulations and rates of this Zone Schedule shall
apply at Foreign-Trade Zone No. 197, its subzones, magnet sites, usage-driven
sites, and annexes unless otherwise provided for. The zone grantee/operator
shall be the sole judge to interpret and determine the applicability
of any of the rates, regulations or services provided for in this
Zone Schedule. However, any matter involving interpretation or action
by U.S. Customs or other agency of the U.S. government will be determined
by the Port Director of Customs, with the concurrence of the Foreign-Trade
Zones Board. Where applicable, the Foreign-Trade Zones Board and U.S.
Customs regulations shall prevail should any conflict arise with this
schedule.
B.
Regulations: Foreign-Trade Zones Board. Foreign-Trade Zone No. 197
is regulated by the Foreign-Trade Zones Board, Washington, D.C., special
regulations as defined in the U.S. Code of Federal Regulations, Title
15, Chapter IV, Part 400, Regulations of the Foreign-Trade Zones Board.
C.
Regulations: U.S. Customs and Border Protection. Foreign-Trade Zone
No. 197 is subject to special U.S. Customs regulations as defined
in U.S. Code of Federal Regulations, Title 19, Chapter I, Part 146,
Foreign-Trade Zones.
D.
Public utility standards. Pursuant to Foreign-Trade Zones Board regulations,
the zone must be operated as a public utility. All rates and charges
for all services or privileges within the zone shall be fair and reasonable,
and the zone grantee and zone operator(s) shall afford to all who
may apply for the use of the zone and its facilities and appurtenances
uniform treatment under like conditions, subject to such treaties
or commercial conventions as are now in force or may hereafter be
made from time to time by the United States with foreign governments,
regardless of whether a zone participant has processed any zone-related
product or engaged a particular service provider (15 CFR 400.42).
The General-Purpose Zone contains buildings available for sale or
lease, and open land suitable for construction, to ensure that the
reasonable zone needs of the business community are being met. The
buildings are equipped to provide storage, manipulation, manufacturing,
and other office space for individual companies to act as their own
operator within their own facility. Additionally, there are buildings
available, or land available for construction, that would accommodate
a third-party provider public warehouse building or buildings, making
zone services available to those companies who did not wish to lease
or purchase their own building, or physically handle their own merchandise
while within the foreign-trade zone site. In this manner, the grantee
provides the community the opportunity for a wide range of firms to
be accommodated under public utility principles.
E.
Uniform treatment standard. Any company that prepares an application
to be filed with the Foreign-Trade Zones Board shall be sponsored
by this grantee organization unless that company is in a business
that will harm other domestic companies, includes information in its
application that is detrimental to the local community, or is not
deemed to be in the general public interest.
F.
Property ownership. As stated in a March 4, 2009, memorandum from
Mr. Andrew McGilvray, Executive Secretary of the Foreign-Trade Zones
Board, zone status is a "privilege," not a "right," which is provided
to grantees only in the Foreign-Trade Zone Act. Property owners are
not specifically included, and the Foreign-Trade Zones Board does
not have the legal right to grant them the privilege of zone status.
A.
Background investigation. In order to permit U.S. Customs to complete
the activation request, a background investigation on the qualifications,
character and experience of key employees and principal officers who
will be involved in the operation of the zone must be completed. A
list of each individual, including full names, addresses, social security
numbers, and dates and places of birth or a completed CBPF 3078 must
be submitted to U.S. Customs in Santa Teresa, New Mexico, in order
for them to perform this investigation [19 CFR 146.6(c)]
B.
Employees and persons entering and leaving activated portion of zone.
Persons desiring admittance to the zone shall make application to
the zone operator and shall be bound by the Foreign-Trade Zones Board
and U.S. Customs regulations and the rules of the zone operator. All
persons having business in the zone will enter and leave at the prescribed
pedestrian entrances and be subject to examination as deemed necessary
for the protection of the Customs revenue.
C.
Identification of employees within activated portion of zone. Every
employee on duty within the zone and in connection with the operation
of the zone shall be required while within the zone to wear appropriate
identification badges to be provided by the zone operator of the zone
or individual users of the zone. Adequate security will be maintained
for unissued badges. All persons having business within the zone,
but not possessing appropriate zone-issued badges, passes, or other
approval to enter the zone, shall apply for the appropriate approval
and entry identification at the zone operator's office. A visitor's
log will be maintained by the zone operator and will contain the date,
name, firm, person to be visited, and pass number for each visitor
permitted to enter the zone.
D.
Physical facilities. All merchandise stored in the zone will be stored
in a safe and sanitary manner. Aisles will be established in storage
areas and may be changed from time to time. All entrances shall be
left unblocked. Trash and waste shall be promptly removed from the
zone. All local, state, and federal health laws shall be observed
to ensure protection of public safety [19 CFR 146.4(f)].
A.
Activation. Pursuant to regulations of the U.S. Customs, all or any
portion of the zone approved by the Foreign-Trade Zones Board may
be approved by the zone grantee and the Port Director of Customs for
foreign-trade zone operations and for the admission, handling, and
shipment for import or export of merchandise in zone status. All procedures
of U.S. Customs shall be followed (19 CFR 146.6).
B.
Boundary modification. The zone grantee may submit to the Foreign-Trade
Zones Board an application to modify the boundary of an existing zone
or subzone or to add a new site under the ASF. The procedure is administrative
at the Foreign-Trade Zones Board without a Federal Register notice
[15 CFR 400.24(c)]. No fee is owed the Foreign-Trade Zones Board.
The site may also be requested to be approved as a subzone.
C.
Construction of buildings and facilities within a zone. The zone
grantee may, with the approval of the Foreign-Trade Zones Board, permit
other persons, firms, or corporations to erect buildings and other
structures within the zone as will meet their particular requirements.
The Foreign-Trade Zones Board statute and regulations contain certain
requirements. All security-related construction should be in accordance
with U.S. Customs requirements and the building activated by U.S.
Customs prior to use. As part of the activation process with U.S.
Customs in Santa Teresa, a cargo-security survey or site visit will
be conducted by U.S. Customs for each company that requests activation
approval for its facility. For additional construction in a designated
zone site, the Foreign-Trade Zones Board must be notified of all such
construction in a general-purpose foreign-trade zone that was not
approved in the original application. Advanced notification is not
necessary. Notification will occur with the annual report to the Board
filed by the Board of County Commissioners of Doña Ana County.
If production authority within a general-purpose zone is requested,
notification will occur with a Production Notification Application
approved by the Foreign-Trade Zones Board.
D.
Deactivation. A zone operator may file a request with the Customs
Port Director to deactivate all or a portion of an existing activated
zone or subzone and shall cease to admit merchandise into the zone
site in zone status. Final action and disposition of the merchandise
must be made with the concurrence of the Customs Port Director.
E.
Disposition of merchandise in a zone. In general, merchandise lawfully
admitted to a zone may, in accordance with these and other regulations
made under the provisions of the Act, be sent into Customs territory
of the United States, destroyed or exported (19 CFR 146.71).
F.
Exclusion from zone of goods or process of treatment/grant restrictions.
When it shall be reported to the Foreign-Trade Zones Board that any
goods or process of treatment is detrimental to the public interest,
health, or safety, the Foreign-Trade Zones Board shall cause such
investigation to be made, as it may deem necessary. No operation or
process of treatment will be permitted in the zone that in the judgment
of the Foreign-Trade Zones Board or the zone operator is detrimental
to the public interest, health, or safety [15 CFR 400.13(a)(8)(b)].
Normally, the Foreign-Trade Zones Board issues a grant restriction
by means of a Board order governing such activity. Grant restrictions
are restrictions or conditions placed in a grant or other approval
by the Foreign-Trade Zones Board that may limit the zone status allowed,
the kind of operation or the merchandise in a zone, the entry of merchandise
into the commerce, the life of the grant, or the amount of acreage
allowed to be activated. See also the definition of "restricted merchandise/operations."
G.
Forms, procedures and operations in a zone. The merchandise and operations
permitted in a zone, the disposition of merchandise in a zone, the
zone status of the merchandise and special provisions applicable to
each status, compliance with requirements of other federal agencies,
the subsequent importation of merchandise, the exportation of merchandise
from a zone, and other operations in a zone authorized by the Act
are all controlled by U.S. Customs forms or forms of other federal
agencies.
H.
Grant sale/conveyance, transfer, assignment, etc. The Foreign-Trade
Zone grant of authority may not be sold, conveyed, transferred, set
over, or assigned [FTZ Act, Section 17; 19 U.S.C. § 81q;
(15 CFR 400.13(a)(7)]. Application may be made to the Foreign-Trade
Zones Board to reissue a grant under certain conditions.
I.
Hours of business and service. The zone operator shall prescribe
hours of business and service, for U.S. Customs purposes.
J.
Independent contractor status. The zone grantee, zone operator, and
any future zone user are not and shall not be considered as joint
venturers, partners, or agents of each other, and none shall have
the power to bind or obligate the other except as set forth in any
written agreement. Zone grantee, zone operator, and any future zone
user agree not to represent to anyone that they are agents of one
another or have any authority to act on behalf of one another except
as set forth in any written agreement.
K.
Lapse/sunset provision. The grant of authority for every general-purpose
zone or subzone may lapse if it is not activated and in operation
within five years of the initial Foreign-Trade Zones Board order issued
after November 7, 1991. Detailed provisions apply. If a portion of
any zone site is not activated within five years of the establishment
of the zone site, the grantee has the right to transfer zone status
to another parcel of land adjacent to the Customs port of entry. Contact
the zone grantee for a complete explanation [15 CFR 400.13(a)(4)].
All zone operators in general-purpose zone sites are subject to sunset
provisions. A usage-driven site operator secure activation approval
and must demonstrate zone activity within three years or lose zone
status. If an operator is located in a magnet site, the operator or
another operator in the magnet site must activate a portion of the
magnet site within five years. Failure to meet the sunset provisions
will result in automatic deletion of zone status. The Board of County
Commissioners of Doña Ana County as grantee will not be held
liable for any difficulties this may create for an operator.
L.
Manipulation, manufacture, exhibition of merchandise. In general,
merchandise lawfully brought into a zone may, in accordance with these
and other regulations made under the provisions of the Act, be stored,
sold, exhibited, broken up, repacked, assembled, distributed, sorted,
graded, cleaned, mixed with foreign and domestic merchandise, or otherwise
manipulated or be manufactured.
(1)
Permission for any manipulation, manufacture, destruction, or exhibition
in a zone shall be obtained from the Port Director of Customs subject
to such application and procedure prescribed by the Secretary of the
Treasury for the protection of the revenue by means of a CBPF 216.
(2)
For production (manufacturing/processing), a second request must
be made in advance to the Foreign-Trade Zones Board for production
operations. The Foreign-Trade Zones Board defines production as any
change in HTS classification. The Foreign-Trade Zones Board must approve
all production operations. This includes certain "kitting" operations
where there may be a change in HTSUS classification. Any new production
operation beyond the scope approved in the Grant of Authority must
be authorized by the Foreign-Trade Zones Board. See generally 15 CFR
400.14(a). In a general-purpose zone, expedited action under interim
production notification authority can be secured. In existing general-purpose
zone sites and subzones, interim production notification authority
may be secured in less than 120 days if U.S. Customs and Border Protection
will provide a concurrence letter to the Foreign-Trade Zones Board.
(3)
In the event of the denial of any application by the Port Director
for any reason, the applicant, the zone grantee or the zone operator
of the zone may appeal the adverse ruling. If any revenue protection
considerations are involved in such an application, the Foreign-Trade
Zones Board shall be guided by the determinations of the Secretary
of the Treasury.
M.
Merchandise permitted in a zone. Foreign and domestic merchandise
of every description, except such as is prohibited by law, may, without
being subject to Customs laws of the United States, except as otherwise
provided in the Foreign Trade Zones Act and the regulations made thereunder,
be admitted into a zone.
(1)
Merchandise that is specifically and absolutely prohibited by law
shall not be admitted into a zone. Any merchandise so prohibited by
law that is found within a zone shall be disposed of in the manner
provided for in the laws and regulations applicable to such merchandise.
A distinction is made between merchandise which is specifically and
absolutely prohibited by law on the grounds of policy or morals, such
as immoral or subversive literature, obscene articles, or lottery
matter, and merchandise which is subject to conditional prohibition
only, for example, articles which are subject to permits or licenses
for the protection of economic or national security or which may be
reconditioned to bring them into compliance with the laws administered
by various federal agencies. Port Directors of Customs are required
to exclude the first class of articles and may not permit them to
be admitted to a zone if they are aware of their prohibited status,
except that the Port Director may permit the temporary deposit of
any such merchandise in the zone pending final determination of its
status. The transfer of articles of the second class to a zone is
subject to any requirements of the federal agency concerned. See 19
CFR 146.31(a) and (b).
(2)
The application for the admission of merchandise into a zone shall
be approved or disapproved by the Port Director of Customs as the
representative of the Foreign-Trade Zones Board on a CBPF 214.
N.
Retail trade within zone. No retail trade shall be conducted within
a zone except under permits issued by the Foreign-Trade Zones Board.
Duty paid and domestic merchandise may be sold in a foreign-trade
zone under certain circumstances.
O.
Scope of authority. Foreign-Trade Zone No. 197 is authorized by Foreign-Trade
Zone Board Order Nos. 665 and 1536 to undertake the activities set
out therein. The Foreign-Trade Zones Board must authorize all production
activity that results in a change in the imported material's
Harmonized Tariff Schedule of the United States classification. This
includes "kitting" operations where finished products are packaged
together for sale. Any change in imported materials and finished products
for such activity must also be authorized to only undertake those
activities approved by the Foreign-Trade Zones Board. The zone operator/user
shall promptly notify the zone grantee of any activity requiring Foreign-Trade
Zones Board notice and authorization.
P.
Sponsor of new zone or subzone. The zone grantee may, in its sole
discretion, decide to sponsor a new zone or subzone project and its
application to the Foreign-Trade Zones Board. In order to make its
determination, the interested party must submit, in letter form to
the grantee, sufficient data in summary form as required in an application
to the Foreign-Trade Zones Board [15 CFR 400.14(a), 400.22, 400.25,
400.37]. If the zone grantee decides to sponsor the proposed project,
the application must be prepared at the cost of the applicant.
Q.
Status of merchandise in a zone. For the purposes of the Act and the regulations relating to this section, all merchandise within a zone, except merchandise in transit through a zone as provided in U.S. Customs regulations, and except merchandise temporarily transferred to a zone for manipulation under Customs supervision pursuant to Section 562, Tariff Act of 1930, as amended, shall be given a zone status on a CBPF 214 document. Any changes to the zone status must be made on a CBPF 214 and approved by the U.S. Customs. For definitions, see § 213-2.
R.
Subsequent importation of zone merchandise. Articles produced in
a zone and exported from there shall, on subsequent importation into
the Customs territory of the United States, be subject to the import
laws applicable to like articles produced in a foreign country, except
that articles produced or manufactured in a zone exclusively with
the use of domestic merchandise, the identity of which has been maintained
in accordance with the Second Proviso of Section 3 of the Act, as
amended, may, on such importation, be entered as American goods returned
[19 CFR 146.67(e)]. Contact the zone grantee for more detailed information
on this topic.
S.
Termination: accrued obligations/survival. All zone operators/users
will specifically acknowledge and agree that, upon termination or
expiration of tenancy in the foreign-trade zone for any reason whatsoever,
the zone operator/user shall not be released or relieved from fulfilling
any and all of its obligations or duties which arose or accrued during
the term of its zone usage. Zone operators/users will specifically
represent and warrant to the zone grantee that upon termination or
expiration of its zone usage for any reason whatsoever, the zone operator/user
shall completely perform and fulfill any and all of its obligations
or duties which arose or accrued during the term of its zone use,
including the immediate preparation and filing of all necessary reports
with the grantee and the U.S. Customs. Specifically, the zone operator's/user's
indemnity obligations, bond obligations, and record and record retention
obligations shall survive the termination or expiration of any Agreement
and/or zone activity for any such reason. The zone grantee may require
the tender of all such records for safekeeping.
T.
Termination: bankruptcy. The Foreign-Trade Zone activity or any rights
hereunder shall not be subject to involuntary assignment, transfer
or sale or to assignment, transfer or sale by operation of law in
any manner whatsoever, and any such attempted involuntary assignment,
transfer or sale shall be void and of no effect. Without limiting
the generality of the foregoing, the zone operator/user agrees that
in the event any proceedings under the Bankruptcy Act or any amendment
thereto be commenced by or against the zone operator/user, and, if
against the zone operator/user, said proceedings shall not be dismissed
before either an adjudication in bankruptcy or the confirmation of
a composition, arrangement or plan of reorganization, or in the event
the zone operator/user be adjudged insolvent or make an assignment
for the benefit of its creditors, or if a writ of attachment or execution
be levied against any real or personal property owned or leased by
the zone operator/user within the zone and be not released or satisfied
within 15 days thereafter, or if a receiver be appointed in any proceedings
or action to which the zone operator/user is a party with authority
to take possession or control of the business conducted thereon by
the zone operator/user and such receiver be not discharged within
a period of 15 days after his appointment, any such event or any involuntary
assignment may constitute a termination by the zone grantee of the
use of the zone without notice or any other action and also shall
terminate all rights hereunder at the discretion of the grantee organization.
U.
Termination: conviction/abandonment. Foreign-trade zone usage may
be terminated if the zone operator/user shall be convicted under any
law of a felony as defined by such law; if the Foreign-Trade Zones
Board or U.S. Customs should suspend or terminate the zone operator/user
or the activated status of the zone; or if the zone operator/user
shall voluntarily abandon, desert, or vacate the premises or discontinue
its operations. The zone operator/user shall immediately provide all
records and reports for the zone grantee, the Foreign-Trade Zones
Board, and the U.S. Customs.
V.
Use of zone by carriers. The loading or unloading areas of a zone
are intended primarily for the use of vehicles unloading merchandise
into the zone or loading merchandise from the zone, and their use
for other purposes may be terminated by the Secretary of the Treasury
if found to endanger the revenue, or by the Foreign-Trade Zones Board,
zone grantee if found to interfere with the primary uses of the zone.
A.
Agreements. All firms using the services of a foreign-trade zone
operator must enter into an operating agreement with the operator.
All foreign-trade zone or subzone operators must enter into an agreement
with the zone grantee. If there is a conflict between the operating
agreement and this Schedule, the agreement will prevail. Copies of
the agreements are available from the zone grantee/operator(s).
C.
Communication, audits, inspections and requests for information.
The zone operator/user shall inform the zone grantee of any substantive
written or oral communication with the U.S. Customs, the Foreign-Trade
Zones Board, and any other federal agency that involves the merchandise
held in the zone with respect to zone activity. The zone grantee must
make all written submissions to the Foreign-Trade Zones Board with
respect to foreign-trade zone activity. The zone operator/user shall
promptly notify the zone grantee of any oral or written request for
information, inspection, spot check, or audit of any kind from U.S.
Customs or the Foreign-Trade Zones Board or other reports requested
by any government agency and of any audit or investigation commenced
by any government agency which directly concerns zone operations,
and shall accompany such notification with copies of all letters,
requests, reports and investigative documentation to the zone grantee.
D.
Confidential relationship. All foreign-trade zone documentation contains
confidential business information that may not be copied or disclosed
without the express written permission of the particular party in
interest. All information shall be kept confidential except that which
is required to be made public by the Foreign-Trade Zones Board or
U.S. Customs. The zone operator is specifically required by 19 CFR
146.4(d)(3) to maintain all transaction records confidential. This
document contains trade secrets and commercial and financial information
relating to the confidential business of private parties. The Trade
Secrets Act (18 U.S.C. § 1905) provides penalties for disclosure
of such information.
E.
Foreign-trade zone usage. Where applicable, the zone operator agrees
to place the following language in all lease/purchase agreements involving
its referenced zone property:
|
The premises are within Foreign-Trade Zone No. 197. If a purchaser,
lessee, or tenant wishes to utilize the foreign-trade zone, it must
enter into an appropriate agreement with the foreign-trade zone grantee
or zone operator as appropriate.
|
F.
Government agencies. The zone operator/user must comply with all lawful regulations of U.S. or New Mexico government agencies. Besides the U.S. Customs, many U.S. agencies have specific laws that apply to the import and export of merchandise. The zone operator/user and its customs broker, if applicable, are responsible for assuring compliance. See also "regulations" definition in § 213-2.
G.
Governmental licenses. Zone operators/users are responsible to obtain,
maintain, and keep current any and all licenses, permits, certificates
or other authorizations required by any federal, state, or local government
that are or may be necessary in the conduct of business in or from
the zone.
H.
Insurance.
(1)
All zone operators/users shall secure and maintain throughout the
term of their insurance with requirements and limits as required by
the zone grantee. Zone operators/users must furnish certificates of
insurance evidencing the required coverage 10 business days prior
to the commencement of operations. As appropriate, insurance shall
include statutory workers' compensation, automobile liability,
and general liability.
(2)
If applicable, zone tenancy may be terminated if, at any time a zone
operator/user fails to maintain the required insurance for any period
of time or fails to comply with any of the insurance requirements.
Detailed insurance requirements may be secured from the zone grantee/operator.
Insurance is carried by the zone operator on its own property only
and does not include insurance on the contents stored therein. The
zone user is obligated to bring nothing within the zone which will
cause the cancellation or forfeiture of the insurance or affect the
premium rate thereof on the building or buildings of which the leased
premises forms a part. Insurance on commodities or other property
stored on the leased premises must be carried by and at the expense
of the lessee or owner of the commodities or other properties. Merchandise
stored, manipulated, or transferred within the zone is not insured
by the zone operator, and the Zone Schedule rates do not include insurance
on merchandise.
I.
Public interest, health and safety. No operation or process of treatment will be permitted in the zone that, in the judgment of the Foreign-Trade Zones Board, zone grantee, or zone operator, is detrimental to the public interest, health and/or safety. The zone operator reserves the right to refuse merchandise that would, in the opinion of the zone management, pose unusual or unacceptable problems or hazards to the zone. See also the definition of "restricted merchandise/operations" in § 213-2.
J.
Regulations: general.
(1)
All persons and merchandise of every description entering or leaving
Foreign-Trade Zone No. 197 for any purpose whatsoever shall be bound
by the lawful regulations of the Foreign-Trade Zones Board and by
the Board order issued thereunder, and U.S. Customs and actions of
the Port Director of Customs.
(2)
Although zones are outside the Customs territory, most federal laws
apply in zones. The extent to which they apply or do not apply depends
on their precise wording, their relationship to the Foreign-Trade
Zones Act, and the interpretation thereof by the particular federal
agency affected. State and local laws apply in zones except to the
extent they are preempted or modified by federal laws. The Foreign-Trade
Zones Board and the Port Director of Customs cooperate with federal,
state, and local government authorities in the administration of their
laws, regulations, and ordinances. The zone grantee, zone operator,
and zone users shall allow such authorities access to the zone to
carry out their duties. They are, however, subject to admission and
departure requirements as noted herein.
K.
Regulations: zone. The rules governing procedure within Foreign-Trade
Zone No. 197 are issued in conformity with and supplementary to the
Foreign-Trade Zones Board and U.S. Customs regulations and such other
United States laws and regulations relating to the port of entry as
are applicable to foreign-trade zone operations.
A.
Abandonment, arrearage, or insolvency. If merchandise has been abandoned
in the zone, or the person in whose account the merchandise is held
in the zone apparently has absconded, is insolvent, or is in serious
arrears in payments owed to the operator, the operator must take legal
action under the laws of the state in which the zone is located to
dispose of the merchandise. If the operator is authorized to sell
the merchandise in public auction to recover a debt, the buyer will
have title in the goods to dispose of them at his or her option. If
the merchandise is to be entered for consumption the owner or purchaser
will be held liable for any duties, taxes and deficiencies due. Auction
sales will be conducted by the zone operator or representative thereof,
and not by Customs or a Customs contractor.
B.
Bureau of Census reporting. Certain statistical information is necessary
to be provided to the Bureau of the Census on all FTZ admission receipts.
If provided to Customs, the CBPF 214A must be salmon or pink in color
and be identified as "Statistical Copy" [19 CFR 146.32(a)]. The current
CBPF 214 to be utilized is available from the operator. U.S. Customs
is responsible for transmitting the CBPF 214As to Census. The operator
may provide this data to the Bureau of the Census with an e-214 filing
or it may be provided to U.S. Customs by completion of the CBPF 214A.
The Bureau of the Census must receive the reports no later than the
tenth calendar day following the month the merchandise was admitted
to the zone.
C.
Customs bond. A Customs and Border Protection Form 301, Activity
Code 4, is utilized for the foreign-trade zone operator's bond.
Provisions are set forth at 19 CFR 113.73. Any companies that will
act as a foreign-trade zone operator must secure a foreign-trade zone
operator's bond in the name of their company.
D.
Customs inspection of merchandise while in zone. The zone operator/user
or his agent shall at all times be immediately available to make the
merchandise subject to inspection required by U.S. Customs and shall
have the sole responsibility of opening crates and packages, handling
the merchandise and securing the crates and packages following the
inspection. In the event that the zone operator/user or his agent
is not immediately available for inspection, then the zone personnel
shall be authorized to open such packages for U.S. Customs and shall
not be liable for any loss or damage for any reason whatsoever to
the goods of the consignee. The zone operator/user shall be charged
for such services at rates established.
E.
Customs permit. Merchandise will not be delivered to or through Customs
territory unless the delivery order is accompanied by a CBPF 3461/7501
(entry for consumption); a CBPF 7512 (entry for transportation, immediate
exportation, or transportation and exportation); or appropriate alternate
procedures.
F.
Grantee knowledge. The zone grantee is not obligated to, and does
not intend to, monitor the day-to-day activity of the foreign-trade
zone. The zone grantee shall have no knowledge, actual or constructive,
of the quantity, character, status designation, identification, or
time of admission, transfer, or release of goods into or from the
foreign-trade zone.
G.
Handling of merchandise. The zone operator/user will be responsible
for the receipt and verification of all merchandise admitted to the
zone on the proper Customs forms and for handling of all merchandise
having activity being performed under the proper Customs forms. The
zone operator/user will perform all these functions according to all
Customs regulations that apply to these activities. The zone operator/user
will not allow removal of any merchandise located within the zone
without prior approval from Customs under the applicable laws, rules
and regulations of the U.S. Customs.
H.
Harbor maintenance fee. The Water Resources Act of 1986 provides
for a harbor maintenance fee to be imposed for commercial use of ports
in the United States. All merchandise arriving at deepwater ports
is subject to a fee of 0.125%. The applicant for admission is liable
for payment of the fee. The filing of the CBPF 349 quarterly is the
responsibility of the zone operator/user or its Customs broker. The
CBPF 350 is used for amendments or refunds.
I.
Hazardous/objectionable commodities. The zone will not be required
to accept for storage any commodity that will affect the rate of insurance
on other merchandise in storage. Products will not be stored except
in locations or areas that are not restricted in the acceptance of
any commodity for storage under the insurance rate established on
contents stored therein. The grantee reserves the right to not allow
certain merchandise to be stored, processed, or manufactured in the
zone.
J.
Indemnification. The zone operator/user will protect, indemnify and
hold harmless the zone grantee and its respective boards, officers
and employees from and against any and all actions, suits, proceedings,
claims, demands (including attorneys' fees and costs), whether
insured or not, arising out of, or incident to, the zone operator's/user's
obligations and operations hereunder. The zone grantee/zone operator
may require a bond at any time the zone grantee/zone operator deems
it necessary to adequately protect the parties indemnified hereby.
K.
Insurance. The grantee may require special insurance coverage in
its agreement with the operator.
L.
Marking. All merchandise handled in the zone, before entry to Customs
territory, must be marked in accordance with U.S. Customs regulations
as to the country of origin and in accordance with all other government
regulations. No merchandise will be permitted by Customs to be transferred
from the zone for any purpose that is not properly labeled or carries
any false or misleading label or mark. A CBPF 216 must be filed and
approved by U.S. Customs prior to any repacking and labeling that
may occur in the zone.
M.
Merchandise processing (user) fee. The current Customs merchandise
processing (user) fee of 0.3464% ad valorem is applicable only to
the value of foreign non-duty-paid merchandise entered into the U.S.
from a foreign-trade zone. In 1995, the North American Free Trade
Agreement for Canadian NAFTA qualifying merchandise provides that
the fee is zero, not 0.3464% as for all other imports. For Mexican
NAFTA qualifying merchandise, the fee was eliminated June 30, 1999.
It is collected on a Customs entry CBPF 7501. Merchandise that is
exported, scrapped, etc., from the zone is not subject to the merchandise
processing fee. The fee has a minimum of $25 and is capped at $485
per entry.
N.
Permission to manipulate, manufacture, exhibit, repack or destroy.
Before merchandise may be manipulated, repacked, manufactured, exhibited,
or destroyed within the zone, application on CBPF 216 must be presented
to the zone operator for concurrence. The zone operator will then
forward the application to U.S. Customs. On approval by the U.S. Customs,
the contemplated activity will then be permitted. The zone operator
maintains a schedule of charges.
O.
Record deficiencies. In the event that any audit, inspection, or
examination by the U.S. Customs, the Foreign-Trade Zones Board, zone
grantee, or zone operator discloses that books, records or operational
procedures of zone operator/user are not in conformance with the requirements
of federal, state and/or local law and the operator's agreement,
the U.S. Customs, the Foreign-Trade Zones Board, zone grantee or zone
operator may order the immediate correction of the documents or procedures.
In the event that it is anticipated that such correction will take
in excess of five working days, a plan of performance will be submitted
by the responsible party(s) to the zone grantee or zone operator for
the correction of such discrepancy, which shall be approved, if necessary,
by the Foreign-Trade Zones Board and the U.S. Customs, and shall proceed
with all due diligence to correct the deficiency as described in the
approved plan.
P.
Record retention. All financial and accounting records of the zone
operator/user concerning zone operations shall be retained for five
years after the act or occurrence recorded or after the merchandise
covered by such records has been forwarded from the zone, whichever
is longer, and all such records shall be available for inspection
and audit by any appropriate government agency and by zone grantee
during normal business hours.
Q.
Reports to governmental agencies. The zone operator may be required
to submit periodic reports to the grantee and the U.S. Customs, or
may be required to perform other acts as the zone operator of the
zone in compliance with governmental regulations. Zone users are required
to and shall cooperate with the zone operator in the creation and
maintenance of procedures, systems, regulations, or programs, and
provide information and statistics that the zone operator considers
necessary to ensure compliance with governmental requirements. The
zone grantee must file an annual report to the Foreign-Trade Zones
Board by the last business day in March on all activity that occurred
in the zone during the previous calendar year (January 1 through December
31). Each zone or subzone operator and zone user must cooperate in
providing the necessary data [15 CFR 400.51(c)]. This data must be
provided to the grantee by no later than February 15 each year. An
annual reconciliation and annual internal review is required of each
foreign-trade zone or subzone operator (19 CFR 146.25, 146.26). A
certification letter acknowledging the annual reconciliation and annual
systems review have been completed and must be forwarded to the Customs
Port Director within 90 days of the end of the operator zone year.
R.
Right of entry. Representatives of the zone grantee, at the zone
grantee's request, zone operator, zone user, the Foreign-Trade
Zones Board, U.S. Customs and other authorized U.S. government officers
shall have the right of access to enter the zone for the authorized
and lawful purpose of examining same, conferring with the zone operator/user,
its agents, invitees, and employees on such premises, inspecting and
checking operations, supplies, equipment and merchandise, and determining
whether the business is being conducted in accordance with the procedures
established for the operation and management of the zone.
S.
Temporary removal. Merchandise held in the zone may be temporarily
removed from the zone for the limited purposes of repair, restoration,
or any incidental operation which would not constitute a "manufacture
or production" under drawback law, 19 U.S.C. § 1313, and
then returned to the zone. Application on a CBPF 216 must be presented
to the zone operator and then to U.S. Customs for concurrence. See
Customs Headquarters Ruling 214189 (August 31, 1982), Ruling 218458
(January 27, 1986), Customs Directive 3260-20 (August 4, 1986) and
Section 9.2 of U.S. Customs FTZ Manual for a more detailed description
of this limited provision.
T.
Trucking and lighterage. Transfer of foreign merchandise from the
first port of arrival through Customs territory to the zone and from
the zone to the port of export must be made by Customs-bonded trucks,
rail cars, airplanes, lighters or other carriers and subject to U.S.
Customs regulations. Alternate procedures for transfer of merchandise
under the Foreign-Trade Operators Bond [See 19 CFR 146.40(b)] not
on bonded carriers, may be available with Customs approval.
A.
Grantee charges. Each general-purpose zone operator that makes its
facilities available to multiple zone user firms is responsible for
preparing and submitting to the grantee an appendix which sets out
the rules, rates and charges at the zone site. Each zone operator
assumes responsibility for maintaining a complete and current Zone
Schedule Each zone operator will provide an appendix of its charges
to the grantee and any changes and/or revisions to the appendix upon
implementation. Additionally, firms utilizing the general-purpose
zone may act as their own zone operator. No other charges will be
levied other than those in Appendix A.[1] Under these circumstances, the zone sites will operate
under the rules and regulations and grantee rates and charges as set
out herein.
[1]
Editor's Note: Appendix A is included as an attachment to this chapter.
B.
Uniform pricing. All customers having similar volume and circumstances
will be afforded the same contractual terms.
