Foreign trade zone

Foreign Trade Division

What is a Foreign Trade Zone and How

Can It Help You?

October 17, 2012

#foreigntrade
Today’s Speakers

Host: Jennifer Smits
Public Affairs and Media Events
Public Information Office
Presenter: Wendy Peebles
Chief, Data Collection Coordination
The U.S. Census Bureau measures the nation's

People, Places, and our Economy

www.census.gov

3
Fundamentals of Exporting

Created by the Foreign Trade Division of the U.S.
Census Bureau, this in-depth webinar series
provides the tools necessary for a strong
foundation in the fundamentals of exporting.
What is a Foreign Trade Zone and How Can It

Help You?

The last webinar in the 8-part series
http://www.census.gov/newsroom/releases/archives/news_conferences/webinars_exporting.html


The Foreign Trade Division is the
official source for U.S. export and
import statistics and is responsible for
issuing regulations governing the
reporting of all export shipments from
the United States.
4

Today’s Topics

• What is a Foreign Trade Zone?

• Types of Foreign Trade Zones

• FTZ Filing Requirements
• FTZ Benefits
• Best Practices
• Resources
5

What is a Foreign Trade Zone?

• A restricted access site, in or adjacent to a

Customs port of entry, but legally defined as

outside the Customs Territory of the United

States.

• Operated by the public or private corporation,
as authorized by the Foreign Trade Zone Board,
and under supervision of U.S. Customs and
Border Protection.
6

What is a Foreign Trade Zone?

• Foreign and Domestic Merchandise may be

admitted into zones

• Merchandise within a zone may be used for
storage, assembly for exhibits, manufacture and
processing.
• Merchandise may be stored into a zone for an

unlimited amount of time.

7

Types of FTZ’s

General Purpose Zone

Established for multiple activities
Established for multiple users
Most commonly located at ports or
Industrial parks
Used by small to medium sized
businesses for warehousing,
distribution, processing or
assembly
9
Examples: Electronics, Machine Parts
Retail items

Types of FTZ’s

Subzones sponsored by General Subzone
Purpose Zones
Typically involve a single company
Used for more extensive
manufacturing/processing that
cannot be accomplished in a
General purpose zone
Example: An Automobile Plant
10

Statistical Filing Requirements

• Foreign Trade Zone Admissions
 CBP paper equivalent forms 214 and 214A

 CBP Electronic 214 Program (E-214)
• Foreign Trade Zones admissions refers to the
physical arrival of goods into a zone
 The correct term to use is admission vs. entry
 Avoids confusion under parts 141-144 CBP
Code of Federal Regulations
• Mandatory Filing of E-214 in the works
11


• Merchandise withdrawn from a FTZ and enters
U.S. Consumption must be filed:
 Automated Broker Interface (ABI) or
 CBP Paper Form 7501
• Tracks flow of goods into the U.S.

12


• FTZ Exports refers to merchandise exiting the FTZ
for shipments to other countries and Puerto Rico
and Virgin Islands
• Foreign Trade Zone Exports
 Automated Export System (AES)
 AESDirect (Free Internet Application)
• Electronic mediums ensure quality and

timely reporting to the Census Bureau

monthly published trade statistics

13

14
Advantages of FTZ’s

• Foreign and domestic merchandise may be

admitted

• Merchandise can be stored, assembled,

manufactured and processed

• Helps create employment opportunities
• Not subject to duties and tariffs, unless and until
the foreign merchandise enters Customs territory
for U.S. consumption
• Helps facilitate and expedite international trade

FTZ Benefits for

Electronic Filing (E-214)

• Provides paperless transmission

• Provides edits and validates data

• Provides cost efficiencies
15

What is an Inbond Code?

An inbond code is a two digit number
identifying the inbond movement of
merchandise. It does not include
spaces, hyphens, slashes or other
special characters
16

Inbond Type Claims

If the inbond type 67 or 68 is selected the FTZ
Identifier MUST be reported.
 Type 67 = Foreign Trade Zone withdrawal
for IE (Immediate Exportation)
 Type 68 = Foreign Trade Zone withdrawal

for T&E (Transportation & Exportation)

18

FTZ Identifier Field

Each Foreign Trade Zone (FTZ) has its own personal
identification number or FTZ I.D. The key aspects of it’s
makeup are:
 It’s 5 digits long
 The first 3 digits are the numeric (zone identifier)
 The last 2 alpha numeric (subzone identifier)
Example:
 Zone 167, without a sub zone = FTZ 16700

19
 Zone 20, with a sub zone H = FTZ 0200H

Completing the EEI in AESDirect

When filling out the Electronic Export Information (EEI), the appropriate
FTZ identifier code should be entered.
It is conditional field, but can become a required If certain inbond types
are selected.
20
Field in AESDirect

Common Reporting Errors

• Reporting a non FTZ identifier
 State code or Names of Cities
 Zip code or Port Code
 Dollar value
 Country Code
 UNKN
• Reporting an inbond code without

the correct FTZ identifier

• Reporting an incorrectly formatted

FTZ identifier

21
 000165B0
 65 H00

Implement Best Practices

• Document the processes – create Standard Operating
Procedures or Manuals that are clear and concise
• Participate in refresher training sessions, conferences, and
webinars at least twice a year. Conduct cross training among
the staff
• Establish clear communications with Staff, Customs Officers,
Freight Forwarders, Other Government Agencies and Trade
Associations
• Results in reducing and eliminating risks and increase
compliance
22

23
Implement Best Practices

• Retain records for at least 5 years
• Ready access to files
• Be prepared to respond to request from government employees
ie., U.S. Customs and Border Protection and U.S. Census
Bureau
• Notify participating government agencies of staff changes so
contact information is updated
• Keep freight forwarders informed and provide accurate
information
• Ensure filing accuracy

24
References

• AESDirect - http://www.aesdirect.gov/
- Support Center
- AESDirect / AESPcLink Userguides
• NAFTZ – http://naftz.org/
- Spring/Fall NAFTZ Conferences
- Annual Regulatory Meeting
- Webinars
• Customs and Border Protection– www.cbp.gov
- Regulatory Requirements
• Foreign Trade Zone Video
http://www.youtube.com/watch?v=mIYoM0i7nok

2012 FTD Customer Service Survey

Available until October 31, 2012

Use this link: http://questionweb.com/82758

Additional Training Tools

 Export training videos
http://www.census.gov/foreign-trade/aes/exporttraining/videos/index.html
26
 Global Reach Blog
http://globalreach.blogs.census.gov

America’s Economy Mobile App

• www.census.gov/mobile

• 16 Key Economic
Indicators, including
International Trade
• Available for iPhone,
iPad and Android
devices
27

For More Information

 Media Inquiries:
 Public Information Office: 301-763-3030
 For Foreign Trade Zone Questions, call
Data Collection Coordination Branch: 301-763-2259
 FTD Call Center: 800-549-0595
 Option 1 – AES Assistance
 Option 2 – Commodity Classification Assistance
 Option 3 – Regulations Assistance
 Option 4 – Data Dissemination Branch
 Fax: 301-763-8835
28

Foreign trade zone

More Related Content

What's hot (20)

Viewers also liked (10)

Similar to Foreign trade zone (20)

Recently uploaded (20)

Foreign trade zone