U.S. Foreign-Trade Zone
Opportunities
SCOTT S. TAYLOR, ESQ.
MILLER AND COMPANY P.C.
Sonoma County
February 4, 2013
© 2013
U.S. Foreign-Trade Zones
n Logical extension of historic/global free zones
n 1934 “New Deal” Legislation
n Unique Legal Structure
n Foreign-Trade Zone Act 19 U.S.C. § 81(a) – 81(u)
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Foreign-Trade Zones Board Regulations 15
C.F.R. § 400
Customs Regulations 19 C.F.R. § 146
FTZ Board Decision Changes - Customs Laws –
“Public Interest Criteria”
© 2013
U.S. Foreign-Trade Zones
n Maintains/creates jobs/investment in the U.S.
as opposed to in a foreign country by
Customs/Tax financial savings
n Not a Customs program
n FTZ Board – Secretary of Commerce,
Secretary of Treasury
n FTZs Are Within U.S. Boundaries, Uniquely
Not Within the U.S. Customs Territory
© 2013
U.S. FOREIGN-TRADE ZONES
n Logical extension of historic/global free zones
n 1934 “New Deal” Legislation – Jobs/Investments
n Unique Legal Structure
n FTZ Board
n Changes - Customs Laws – “Public Interest Criteria”
n Maintains/creates jobs investment in the U.S. as
opposed to in a foreign country by Customs/tax
financial savings
n Not a Customs program
n FTZs are within U.S. boundaries, uniquely not within
the Customs territory
© 2013
WHO IS ELIGIBLE?
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Foreign-trade zones stimulate American economic
growth and development because they encourage
companies to continue and to expand their
operations in the United States.
Foreign-trade zones are located in all 50 states and
Puerto Rico.
A company must have a facility in the United States
that imports either parts, materials or components
for manufacturing and finished goods or parts for
distributions.
The finished good is then exported or sold in the
United States market.
© 2013
WHAT IS A FOREIGN-TRADE ZONE?
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Foreign-trade zones are restricted-access sites that
are considered outside the U.S. Customs territory,
but are physically located in the United States.
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Companies that operate in foreign-trade zones can
defer, reduce, or eliminate Customs duties on
foreign products admitted into zones for storage,
exhibition, assembly, manufacture, and processing.
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WITHOUT A ZONE
n Product is imported
n Customs Entry is made
n HTSUS Classification and duty rate are
declared
n Customs duty is paid
n This is based on Harmonized Tariff Schedule
of the United States (HTSUS)
© 2013
© 2013
WITH A ZONE
n Product moves into same Port
n Shipped In-Bond to Sonoma County facility
n Admitted to Zone (outside U.S. Customs
territory)
n Eventually entry is moved or exported.
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WHO BENEFITS?
n Companies that Import and Export Merchandise
n Warehouse Operators
n Manufacturers
n Third Party Logistics Providers
© 2013
FTZ BOARD
n Secretary of Commerce — Ms. Rebecca Blank
(Chairperson)
n Secretary of Treasury — Mr. Timothy Geithner
n Executive Secretary — Mr. Andrew McGilvray
n Department of Homeland Security Liaison — Ms. Janet
Napolitano (Secretary)
n Acting Customs and Border Protection Commissioner
Role (Supervisors) — Mr. David V. Aguilar
© 2013
U.S. Foreign-Trade Zones Program
© 2013
RAPID DEVELOPMENT
1970
2013
n 10 General-Purpose Zones
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n 3 Subzones
n 1,401 jobs
n $104 million (received)
n 11% domestic material
282 General-Purpose Zones*
692 Subzones*
340,000 jobs**
$106 billion (received –
warehouse/distribution operations)**
n $535 billion (received –
manufacturing/production
operations)**
*Data as of January 22, 2012
**FY 2011 (latest) FTZ Board statistics published in December 2012
© 2013
REASON FOR RAPID
DEVELOPMENT
n Globalization
n Customs Duty Planning-Financial Savings
n 1950 - Manufacturing Statutory Amendment, Public
Law 566, 81st Congress (approved June 17, 1950)
n 1952 – Foreign-Trade Subzones, Board Order No. 29
(17 Fed. Reg. 53160 - June 5, 1952)
n 1980 - Manufacturing Valuation Section 146.48(e),
Customs Regulations
n State/Port Authority/Local Development Agency
Involvement
© 2013
CALIFORNIA
ZONES AND SUBZONES
n 18 General-Purpose Zones
n 34 Subzones
© 2013
FOREIGN-TRADE ZONE NO. 3
SAN FRANCISCO, CALIFORNIA
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Grantee: Port of San Francisco
ASF Service Area: City and County of San Francisco and San Mateo County
Pending ASF Service Area Expansion: Contra Costa, Marin and Solano Counties, as well as portions of
Napa and Sonoma Counties, California
3 sites located within the San Francisco Customs port of entry including the San Francisco International Airport
fuel system and related facilities. (Application, 2 F.R. 702, 04/16/37; established zone (Board Order No. 16,
03/10/48) 13 F.R. 1459, 03/19/48; boundary change, Application, filed 04/24/50 (Board Order No. 25, 08/31/50)
15 F.R. 6053, 09/08/50; boundary change, Application, filed 10/09/56 (Board Order No. 43, 12/20/56) 21 F.R.
10434, 12/28/56; request for extension of time for relocation, filed 02/18/57, 22 F.R. 2317, 04/06/57 (Request
for exit approved until 07/01/57); denial of boundary change, Application, filed 01/18/57 (Board Order No. 44,
10/07/57) 22 F.R. 8091, 10/11/57; temporary relocation, Application, filed 03/19/58 (Board Order No. 46,
05/05/58) 23 F.R. 3277, 05/14/58; time extension on relocation, Application, letter dated 11/06/64 (Board Order
No. 66, 05/05/65) 30 F.R. 6596, 05/13/65; Grantee name change, Application, (not published) (Board Order
No. 80, 09/29/69) 34 F.R. 15506, 10/04/69; relocate zone to Pier 19, 23, Application, 42 F.R. 24076, 05/12/77
(Board Order No. 121, 06/13/77) 42 F.R. 38942, 08/01/77; expansion Application, 65 F.R. 30057, 05/10/00;
expansion approved (Board Order No. 1129, 11/21/00) 65 F.R. 76217, 12/06/00). Administrative Action A(27f)4-2002, A(27f)-23-2002. Alternative Site Framework Application (Docket 39-2010, 75 F.R. 29974, 05/28/10);
ASF approved pursuant to Board Order No. 1718, 10/31/10 (75 F.R. 64708, 10/20/10).
Site 2:
Site 3:
Site 4:
The jet fuel storage and delivery facilities at the San Francisco International Airport; 8.5 acres at the Chevron
jet fuel tank farm, the PS Trading tank farm consisting of 1 acre and related pipelines between the tank farms;
jet fuel transmission pipelines and the terminal and cargo area hydrant pipelines; 26 acres at the Brisbane
Terminal, 950 Tunnel Avenue, Brisbane, the petroleum and jet fuel storage facilities; and 7 acres at the
Equilon Terminal, 135 North Access Road, the petroleum and jet fuel storage facilities. (usage-driven site)
55 acres at the petroleum facilities of Selby Terminal, 90 San Pablo Avenue, Crockett. (usage-driven site)
164 acres at the petroleum facilities of Martinez Terminal, 2801 Waterfront Road, Martinez. (usage-driven site)
© 2013
FOREIGN-TRADE ZONE NO. 3
SAN FRANCISCO, CALIFORNIA
Subzone 3A: (CLOSED) Lilli Ann Corporation's textile manufacturing plant, 355 Treat Street, San Francisco, which produces semi-finished
and finished clothing from woven woolen cloth. (Application on file with Board (notice not published); established subzone (Board Order No.
59, 06/27/63) 28 F.R. 6931, 07/06/63; subzone boundary modification, Application, filed 03/10/64 (Board Order No. 62, 05/22/64) 29 F.R.
6967, 05/27/64).
Subzone 3B: Chevron Products Company’s 2,900-acre oil refinery at Chevron Way, Richmond (Contra Costa County), California. The refinery
is used to produce fuels and petrochemical feedstocks. (Application, 62 F.R. 33828, 06/23/97; subzone approved (Board Order No. 974,
04/28/98) 63 F.R. 25819, 05/11/98). GRANT RESTRICTION - Oil refinery with certain options available to September 30, 2000. (Request for
Extension of Authority for the NPF option of the Oil Refining Board Restriction, 64 F.R. 48140, 09/02/99; extension approved (Board Order No.
1116, 08/24/00) 65 F.R. 52696, 08/30/00). GRANT RESTRICTION - Oil refining.
Subzone 3C: (LAPSED) Oil refinery complex of Tesoro Refining and Marketing Company consisting of 3 sites, totaling 2,139.75 acres in the
Martinez, California area, Contra Costa County, northeast of San Francisco. The refinery complex is within the San Francisco Customs port of
entry, employs 636 full-time and 434 contract employees and is used to produce fuels and petrochemical feedstocks. (Application, 66 F.R.
1438, 01/11/02; subzone approved (Board Order No. 1263, 12/10/02) 67 F.R. 78414, 12/24/02). GRANT RESTRICTION - Oil refining.
Subzone 3D: Valero Refining Company’s oil refining facilities in Benicia, California consists of 4 sites in Solano County: Site 1 (510 acres)
main refinery complex, located at 3400 East 2nd Street in Benicia; Site 2 (53 acres) crude tank farm, located southeast of the main refinery
complex in Benicia; Site 3 (11.31 acres) crude dock, located on Pier 95, near the Benicia-Martinez Bridge in Benicia; and Site 4 (1.34 acres)
coke facilities, located on Pier 95, near the Benicia-Martiniez Bridge in Benicia. The facility currently employs 511 employees and is used to
produce fuels and other petroleum products including gasoline, diesel, jet fuel, propane, butane, fuel oil, residual oil, and asphalt. (Docket 122011, 76 F.R. 10329, 02/24/11; subzone approved (Board Order 1797, 11/16/11) 76 F.R. 72675, 11/25/11.
Temporary Subzone: (TERMINATED) Special purpose subzone for exhibition of foreign merchandise in the Gold Ball Room of the Palace
Hotel in San Francisco, California from June 19 to June 30, 1953 in conjunction with the International Congress of Junior Chambers of
Commerce and the San Francisco International World Trade Fair. (Application, filed 11/12/52, temporary subzone approved (Board Order No.
32, 03/24/53) 18 F.R. 1866, 04/03/53).
© 2013
FOREIGN-TRADE ZONE No. 18
SAN JOSE, CALIFORNIA
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Grantee: City of San Jose Office of Economic Development
ASF Service Area: City of San Jose
7 acres consisting of a 330,000 square foot warehouse facility located at 2055 South 7th Street, San Jose,
California. (Application, 39 F.R. 18510, 05/28/74; established zone (Board Order No. 103, 11/27/74) 39
F.R. 42031, 12/04/74; approved precious metal recovery, Application, 45 F.R. 9760, 02/13/80 (Board Order
No. 158, 06/04/80) 45 F.R. 39324, 06/10/80; Application for reorganization filed 07/08/83, 48 F.R. 32617,
07/18/83; time extension on temporary site, Application, filed 10/05/84; extension approved (Board Order
No. 282, 11/26/84) 49 F.R. 47279, 12/03/84; zone relocation, Application, 49 F.R. 44659, 11/08/84;
relocation approved (Board Order No. 293, 04/03/85) 50 F.R. 15206, 04/17/85; Request for Manufacturing
Authority Application for Silicon Valley Solutions, Inc. to manufacture personal computers for export in FTZ
18, 60 F.R. 42500, 08/16/95; request for manufacturing authority approved (Board Order No. 777,
10/13/95) 60 F.R. 54470, 10/24/95). GRANT RESTRICTION - Export only. (Request for Manufacturing
Authority for Selectron Corporation to assemble a variety of computer/telecommunication equipment and
subassemblies, 62 F.R. 12791, 03/18/97; Manufacturing Authority approved (Board Order No. 917,
09/05/97) 62 F.R. 48590, 09/16/97). Administrative Actions A 2 80, A 8 82, A 3 83, A-16-90, A-32-91,
A(27f)-25-2000, A(27f)-2-2002. ASF Application, Docket 28-2012, 04/04/12; 76 F.R. 21527, 04/10/12;
approved Board Order No. 1842, 07/23/12; 76 F.R. 45334, .
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FOREIGN-TRADE ZONE No. 18
SAN JOSE, CALIFORNIA
Subzone 18C: Cirrus Logic, Inc.’s 26-acre facility (377,000 square feet) located at 3100 West Warren Avenue, Fremont, California, 15 miles north of
San Jose. The facility employs 1,400 people and is used for storage, inspection, testing, packaging and distribution of silicon wafers and
integrated circuits which are used in computers and other electronic products. (Docket No. 59-97, 62 F.R. 38972, 07/21/97; subzone approved
(Board Order No. 984, 06/11/98) 63 F.R. 34144, 06/23/98).
Subzone 18D: Hewlett-Packard Company’s facilities consisting of 1,114,466 square feet on 53-acres in the San Jose, California area. The
facilities are used for manufacture and distribution of computers, printers, measurement devices, medical products and related products and
employ 245 people. (Application, 62 F.R. 35151, 06/30/97; subzone approved (Board Order No. 996, 07/31/98) 632 F.R. 43904, 08/17/98).
Site 1:
Site 2:
Site 3:
581,814 square feet on 30.6 acres located at 915 Story Road/935 McLaughlin Avenue, San Jose (Santa Clara County).
276,696 square feet on 12.5 acres located at 18250 Murphy Parkway, Lathrop (San Joaquin County).
255,956 square feet on 9.9 acres located at 5800 Coliseum Way, Oakland (Alameda County).
Subzone 18E: Space Systems/Loral, Inc.’s manufacturing facilities located in Palo Alto, Menlo Park and Mountain View, California. The facilities
consist of five sites on 37 acres. The facilities are used for the manufacture of satellites and satellite systems and employs 1,300 employees.
(Application, 70 F.R. 31420, 06/01/05; correction 70 F.R. 36561, 06/24/05; subzone approved (Board Order 1458, 06/16/06) 71 F.R. 37041, 06/29/06).
Site 1:
Site 2:
Site 3:
Site 4:
Site 5:
28.4 acres located at 3825, 3850 and 3875 Fabian Way, Palo Alto.
1 acre located at 3977 and 3963 Fabian Way, Palo Alto.
5 acres located at 1034-1036 and 1025 E. Meadow Circle, Palo Alto.
110,000 square feet on .1 acre located at 1205 and 1145 Hamilton Court, Menlo Park.
2.5 acres located at 2288 Charleston Road, Mountain View.
Subzone 18F: Lam Research Corporation’s facility employs 1,483 people, and is used for the manufacture, assembly, repair, kitting, de-kitting, and
distribution of wafer fabrication equipment. The Subzone consists of 4 sites on 85 acres. (Docket 36-2010, 75 F.R. 29722-3, 05/27/10; subzone
approved pursuant to Board Order No. 1724, 11/26/10; 75 F.R. 76952-3, 12/10/10).
Site 1:
Site 2:
Site 3:
Site 4:
Site 5:
29 acres located at 4650 Cushing Parkway in Fremont
20 acres located at 6120 Stewart Avenue in Fremont
deleted per A(27f)-98-2010
7 acres located at 1 Portola Avenue in Livermore.
4.4 acres located at 7364 Marathon Drive in Newark.
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FOREIGN-TRADE ZONE No. 56
OAKLAND, CALIFORNIA
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Grantee: City of Oakland
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4 sites including the 20-acre Oakland Commerce Center, 9401 San Leandro Street, Oakland, California
consisting of 2 sites. (Application, 44 F.R. 61239, 10/24/79; established zone (Board Order No. 155,
04/18/80) 45 F.R. 27802, 04/24/80). Administrative Actions A 6 86, A-18-89, A-1-91, and A-9-92.
(Application for expansion and relocation, 56 F.R. 22842, 05/17/91; Application amended to request
manufacturing authority for Advanced Blending Corporation, 56 F.R. 38112, 08/12/91; zone expanded and
relocated and manufacturing approved (Board Order No. 589, 07/15/92) 57 F.R. 32521, 07/22/92).,
Administrative Actions A(27f)-27-96 and A(32c)-3-96. GRANT RESTRICTION - Export only/Re-export
foreign dairy products and sugar. Administrative Actions A(27f)-12-2001, A(27f)-48-2004, A(27f)-5-2005,
A(27f)-8-2008, A(32c)-18-2008, A(27f)-03-2010, A(27f)-30-2010, A(32c)-07-2010.
Site 1:
Site 2:
Site 3:
Site 4:
16.54 acres consisting of 391,129 square feet located at 9401 San Leandro Street. The site is owned by
Pacific American Warehousing and Trucking Company (PacAm).
1.34 acres (58,500 square feet) located at 400 Lancaster Street, within a 105,000 square foot warehouse.
This site is operated by PacAm and utilized by Fairn & Swanson Company.
1.46 acres located within the western portion of a 129,600 square foot distribution center at 30805 Santana
Street in Hayward, California.
0.45 acres (19,685 square feet) located with the eastern portion of a warehouse at 1900 West Winton Avenue,
Hayward, California.
Subzone 56A: (INACTIVE) Mazda Motors of America, Inc., Benicia, California. The Mazda facility is located on a 45 acre site in
Benicia, California. The facility, which employs 60 people, is used to process, modify and distribute imported Mazda vehicles. The
modifications, performed under contract by Benicia Industries, Inc., involve installing domestic com¬ponents such as air conditioners,
bumpers, mirrors, bed liners, rear windows and mats. (Docket No. 22 87, 52 F.R. 41314, 10/27/87; subzone approved (Board Order
No. 423, 01/18/89) 54 F.R. 3825, 01/26/89).
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FOREIGN-TRADE ZONE No. 143
WEST SACRAMENTO, CALIFORNIA
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Grantee: Sacramento-Yolo Port District
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4 sites. (Application, 51 F.R. 18639, 05/21/86; established zone (Board Order No. 360, 08/06/87) 52 F.R.
30698, 8/17/87). Administrative Actions A-23-89 and A(27f)-22-96. (Expansion Application 62 F.R. 15459,
04/01/97; expansion approved (Board Order No. 944, 12/15/97) 62 F.R. 67044, 12/23/97; Request for
Manufacturing Authority for Zytec Services and Logistics, Docket No. A(32b1)-3-97, 62 F.R. 45394,
08/27/97; formally docketed 5-98, 01/21/98 (not published); withdrawal of Request, 64 F.R. 29993,
06/04/99; expansion Application, 64 F. R. 41374, 07/30/99; expansion approved (Board Order No. 1074,
01/18/00) 65 F.R. 5495, 02/04/00; expansion Application, 67 F.R. 1959, 01/15/02; expansion approved
(Board Order No. 1235, 06/27/02) 67 F.R. 45456, 07/09/02). GRANT RESTRICTION - Acreage.
Administrative Action A(27f)-38-2006.
Site 1:
686 acres within the Port of Sacramento at Industrial Boulevard and Boatman Avenue, West Sacramento.
Site 2:
1,267 acres, Lincoln Airport Business Park, Aviation Boulevard, Lincoln.
Site 3:
1,574 acres at the Chico Municipal Airport complex and adjacent industrial development area, Chico, County of
Butte.
Parcel 1:
East Area, 300 acres, east of Cohasset Road, Chico.
Parcel 2:
West Area, 250 acres, adjacent to and west of the Chico Municipal Airport, Chico.
Parcel 3:
Airport Area, 1024 acres, Chico Municipal Airport complex including the Airport Industrial Park, but
excluding airport runways and public terminal area.
Site 4:
976 acres located at 3140 Peacekeeper Way, McClellan, California.
© 2013
FOREIGN-TRADE ZONE No. 143
WEST SACRAMENTO, CALIFORNIA
Subzone 143A: C. Ceronix, Inc.'s 21-acre video monitor manufacturing facility located at 13350 New Airport Road, Auburn, California. The facility
produces high-resolution video display monitors for the gaming and recreational industries. (Application, 60 F.R. 17514, 04/06/95; application
approved (Board Order No. 807, 03/12/96) 61 F.R. 11607, 03/21/96; expansion/relocation Application, 62 F.R. 24393, 05/05/97; expansion/relocation
approved. The existing site of Subzone 143A will retain FTZ status for a period of six months from the date of approval. (Board Order No. 948,
01/07/98) 63 F.R. 2659, 01/16/98). GRANT RESTRICTION - Time limit on existing 143A for six months. Administrative Action A(27f)-32-98.
Administrative Action A(27f)-32-98 authorizes a continuation of FTZ status at the Locksley Lane facility for an additional 15 months for C.Ceronix,
Inc.’s subzone operation as construction schedule for the new location has been delayed. The requested minor modification to the grant of
authority for Subzone 143A is approved until December 31, 1999.
Subzone 143B: Hewlett-Packard Company’s manufacturing and distribution facilities consisting of three sites totaling 569.2 acres (5.9 mil. square
feet at completion) located in the Sacramento area. The facilities are used for storage, manufacture, and distribution for import and export of
computers and related devices, printers, electronic test and measurement devices, electronic medical products, and related electronic products
and components and employ 4,000 people. (Application, 62 F.R. 12792, 03/18/97; Subzone approved (Board Order No. 927, 10/16/97) 62 F.R. 55573,
10/27/97). Administrative Actions A(27f)-42-97 and A(27f)-19-98.
Administrative Action A(27f)-42-97 approved a minor boundary modification transferring subzone status from a parcel, 7 acres, within Site 1 to a
warehouse facility, 320,000 square feet on 7 acres, located at 8301 Belvedere Avenue, Sacramento, California. The new site will be designated as
Site 4.
Administrative Action A(27f)-19-98 approved a temporary minor boundary modification transferring 14 acres within the southeastern portion of Site
1, 8000 Foothills Blvd., Roseville, California to two warehouse facilities, 15 acres total, located at 8825 Elder Creek Road, 2 acres, Sacramento and
1100 Tinker Court, 13 acres, Rocklin, California. The new sites are designated as Sites 5 and 6 respectively. The modification is approved until
December 31, 2002.
Site 1:
Site 2:
Site 3:
Site 4:
Site 5:
Site 6:
1,233,800 square foot plus 2,580,000 square foot proposed main manufacturing plant on 479.2 acres located at 8000 Foothills
Boulevard, Roseville.
515,600 square foot warehouse/processing facility on 26.7 acres located at 2975-3055-3071 Venture Drive, Lincoln.
800,000 square foot plus 400,000 square foot proposed warehouse/processing facility on 42.3 acres located at 2222 East Beamer
Street/221 Hanson Way, Woodland.
320,000 square foot warehouse facility on 7 acres located at 8301 Belvedere Avenue, Sacramento, California
2-acre warehouse facility located at 8825 Elder Creek Road, Sacramento, California. Temporary until 12/31/2002
13-acre warehouse located at 1100 Tinker Court, Rocklin, California. Temporary until 12/31/2002.
© 2013
FOREIGN-TRADE ZONE No. 143
WEST SACRAMENTO, CALIFORNIA
Subzone 143D: Grafil, Inc.’s manufacturing and distribution facilities consist of 2 sites totaling 111,000 square feet on 11 acres in the Sacramento
area. The facilities manufactures polyacrylonitrile-based carbon fiber products, including carbon fiber for commercial applications and employ 109
employees. (Application, 72 F.R. 48612, 08/24/07); subzone approved (Board Order No. 1620 (05/07/09) 74 F.R. 24798, 05/26/09).
Site 1:
Site 2:
65,000 square foot manufacturing and distribution facility located on 10 acres located at 5900 88th Street in Sacramento.
46,000 square feet warehousing and distribution facility located on 1 acre at 6003 88th Street in Sacramento.
Subzone Application Withdrawn: Flint Ink North America Corporation’s manufacturing and distribution facilities in West Sacramento, California.
(Docket No. 39-2002, 67 F.R. 64088, 10/17/02; extension of comment period, 67 F.R. 68832, 11/13/02; extension of comment period, 68 F.R. 2498,
01/17/03; extension of comment period, 68 F.R. 14191, 03/24/03; withdrawn because of changed circumstances, 68 F.R. 39510, 07/02/03).
© 2013
FOREIGN-TRADE ZONE No. 226
MERCED, MADERA & FRESNO
COUNTIES, CALIFORNIA
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Grantee: Merced County Board of Supervisors
ASF Service Area: Portions of Fresno, Kings, Madera, Mariposa, Merced, Stanislaus, and
Tulare Counties
12 sites in 3 counties in California’s Central Valley. (Application, 62 F.R. 36258, 07/07/97; zone established (Board
Order No. 946, 12/22/97) 63 F.R. 778, 01/07/98.) GRANT RESTRICTION - Acreage. (Request for export
manufacturing authority for Pacesetter Industries, Inc. within Site 1, 63 F.R. 45044, 08/24/98; export manufacturing
approved (Board Order No. 1009, 11/16/98) 63 F.R. 65171, 11/25/98.) GRANT RESTRICTION - Export Only.
(Request for manufacturing authority for Grundfos Manufacturing Corporation (Inc.) within Site 8, 63 F.R. 19707,
04/21/98; manufacturing authority approved (Board Order No. 1018, 01/20/99) 64 F.R. 5765, 02/05/99.) GRANT
RESTRICTION - Steel. Administrative Actions A(27f)-50-2000, A(27f)-26-2002. (Expansion and reorganization
Application, 67 F.R. 56984, 09/06/02; expansion and reorganization approved (Board Order No. 1276, 05/14/03) 68
F.R. 27985, 05/22/03.) GRANT RESTRICTION – Acreage Administrative Action A(27f)-10-2006, A(27f)-39-2008.
Site renumbering notice 11/04/10 (75 F.R. 69057-8, 11/10/10). Administrative Action A(27f)-116-2011.
Site 1:
Site 2:
Site 3:
Site 4:
Site 6:
Site 7:
Site 8:
Site 9:
Site 10:
Site 11:
Site 12:
Site 13:
791 acres at Castle Airport/Morimoto Industrial Park, 3450 C. Street, Atwater, Merced County.
242 acres within the MidState 99 Distribution Center, Visalia (Tulare County) (includes 65 acres located at
2525 North Plaza Drive approved on a temporary basis until 3/1/11).
191 acres at Mid Cal Business Park, Highway 33, Gustine, Merced County.
101 acres at Applegate Business Park, Air Park Road, Atwater, Merced County.
87 acres at City of Madera Airport Industrial Park/State Center Commerce Park (within State enterprise zone),
Falcon Drive, Madera, Madera County.
10 acres at City of Madera Industrial Park (within State enterprise zone), 2500 West Industrial Avenue,
Madera, Madera County.
102 acres at Airways East Business Park, East Shields Avenue, Fresno, Fresno County.
225 acres at Central Valley Business Park, East North Avenue, Fresno, Fresno County.
497 acres at Fresno Airport Industrial Park/City of Clovis Industrial Park, Aircorp Way, Fresno and West
Dakota Avenue & West Pontiac Way, Clovis, Fresno County.
35 acres at Reedley Industrial Park II, 1301 South Buttonwillow Avenue, Reedley, Fresno County.
128 acres at City of Selma Industrial Park, East Nebraska, Selma, Fresno County.
15 acres located at 810 E. Continental Avenue, Tulare.
© 2013
FOREIGN-TRADE ZONE No. 231
STOCKTON, CALIFORNIA
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Grantee: Stockton Port District
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Eight sites in Stockton, California area within and adjacent to the San Francisco/Oakland Sacramento
Consolidated Customs port of entry. (Application 62 F.R. 36258, 07/07/97; zone established (Board Order
967, 04/15/98) 63 F.R. 23719, 04/30/98.) GRANT RESTRICTION - Acreage. (Expansion Application, 71
F.R. 35610, 06/21/06; expansion approved (Board Order No. 1489, 11/09/06) 71 F.R. 67329, 11/21/06).
GRANT RESTRICTION – Acreage. (Expansion Application, 73 F.R. 12949, 03/11/08; expansion approved
(Board Order No. 1588, 11/20/08) 73 F.R. 74140, 12/05/08 – subject to Sunset Provision if not activated by
11/30/13). Administrative Action A(27f)-19-2009, A(27f)-76-2010.
Site 1:
Site 2:
Site 3:
Site 4:
Site 5:
Site 6:
Site 7:
Site 8:
600 acres within the Port of Stockton complex on the Stockton Deepwater Ship Channel.
1,433 acres within Rough and Ready Island on the Stockton Deepwater Ship Channel.
1,494 acres located at Stockton Metropolitan Airport.
Parcel 1:
1,453 acres at the Stockton Metropolitan Airport.
Parcel 2:
41 acres within the Airport Gateway Center located at 931 and 1030 Runway Drive in Stockton.
67 acres within the 72-acre ProLogis Park Tracy I, located at Grant Line Road and Paradise Avenue, Tracy.
168 acres at ProLogis Park Tracy II, 1941 North Chrisman Road, Tracy.
77 acres within the 600-acre ProLogis Park Patterson Pass, 25882 South Corporate Court, Tracy.
106 acres at the ProLogis Park Duck Creek 4720 East Farmington Road, Stockton.
468 acres at the Opus Logistics Center in Stockton located at 5959 Arch Road.
© 2013
FTZ INDUSTRY USE
n
OIL REFINING – CITGO, ConocoPhillips, Chevron, Exxon Mobil, Lion Oil Company,
Motiva Enterprises, Shell Oil, Sunoco, Tesoro Refining & Marketing Company, U.S.
Department of Energy Strategic Petroleum Reserve, and Valero – 94 approved.
n 2011 Dollar Volume - $231.7 Billion
n
MOTOR VEHICLES – BMW, Chrysler, Ford, GM, Honda, Hyundai, Kawasaki, Kia,
Mercedes, Volkswagen, Nissan – 124 approved.
n 2011 Dollar Volume - $25 Billion
n
ELECTRONICS – AZ Electronics, Canon, Dell, HP, Intel, Lucent, Ricoh, and Sony – 74
approved.
n 2011 Dollar Volume - $12.4 Billion
n
PHARMACEUTICAL INDUSTRY –Abbott Laboratories, AstraZeneca, Baxter Health Care,
BMS, Eli Lilly, GlaxoSmithKline, IPR Pharmaceuticals, Merck, Pfizer, Sanofi and others –
85 approved.
n 2011 Dollar Volume - $8.3 Billion
n
CONSUMER GOODS – Conair, GE Appliance, Eastman Kodak, Movado Group, Pier 1
Imports, Fuji Photo Film – 56 approved.
n 2011 Dollar Volume - $3.2 Billion
© 2013
POTENTIAL SONOMA COUNTY USES
n Pharmaceutical - Manufacturing
Imported Active Pharmaceutical Ingredient (6.5%) à Finished
Pharmaceutical Tablet (0%)
n Clean Tech/Green Tech – Warehousing, Manufacturing, Distribution
n Wind turbine components (0% - 10.6%) à Finished Nacelle (0% 2.5%)
n Electric Vehicles & components (0% - 20%) à Finished Electric
Vehicle (2.5%)
n High-Tech components ex: silicon wafers, integrated circuits,
satellite components, wafer fabricated equipment, mobile devices
n
n
Parts (0%-9%) à Finished Product (0%)
n Wine/Alcohol – Distribution for Export, Warehousing
n
n
Imported wine à Export bottled wine
Defer Customs Duties, Defer or Reduce Federal Excise Tax
© 2013
SENSITIVE INDUSTRIES
n Industry Concerns
n
n
n
n
Steel
Textiles
Sugar
Printer’s ink
© 2013
PRIMARY FINANCIAL SAVINGS
n Inverted Duty – 6.8% à 0%, 5% à2.5%
n Cash Flow
n Exports
n Staged Duty Reductions
n Direct Delivery
n U.S. Labor/Overhead/Profit
n Scrap/Waste/Obsolete Material
n Weekly Entry
n Merchandise Processing Fee Savings
n Customs Brokerage Expense Savings
n Paperwork Reduction
n Tax Savings
n “Bona Fide” Customs Reason
© 2013
Easiest Way to Increase
Existing FTZ Use
n Identify and Include All Direct Foreign
Sourced Material
n Identify and Include Domestic Purchased
Merchandise that is Really Foreign-Sourced
Merchandise
n Packaging
n Scrap/Waste/Obsolete
n Kitting
© 2013
Packaging
n Non-Reusable Containers
n Foil/Plastic
n Pumps
© 2013
Scrap/Waste/Obsolete
n Consumer Goods
n Chemicals
n Glassware
n Dinnerware
© 2013
Kitting
n Liquor/Glasses/
n Pen Set
Cradle
n Cosmetics
n Cell Phones
n Computers
n Home Theatre Kits
n Tool Kits
n Napkins/Rings
n Audio Rack System
n Surgical Pack
n Clothing Set
n Dinnerware Set
n Glassware Set
©©2013
2013
Everybody Does It
n Oil Refineries
n Shipyards/ Offshore
n Motor
Drilling Rig
Production
n Information
Technology
n Toner Cartridges
n Footwear
n LME Warehouses
Vehicles/Parts
n Engine Production
n Pharmaceutical/
Medical Equipment
Production
n Chemical
Production
©©2013
2013
Future Users/Uses
n Expand Current FTZ
n All U.S. Distribution
Operations
n AD/CVD
Merchandise
n High Duty Rate
Merchandise –
Compound/ Chapter
99/ General
Warehouses
n Spare Parts
Warehouses
n Returns/Repair
Operations
©©2013
2013
HYPOTHETICAL FOREIGN-TRADE ZONE SAVINGS ANALYSIS
Annual Imports of Foreign Parts/Materials
$100,000,000
$100,000,000
$25,000,000
$25,000,000
$100,000,000
$0
6.00%
0.00%
$6,000,000
$6,000,000
$100,000,000
$0
4.90%
0.00%
= DUTY EXPENSE
$4,900,000
$4,900,000
2013
= FTZ INVERTED DUTY ©
SAVINGS
©2013
$1,100,000
$1,100,000
Average On-Hand Imported Merchandise Inventory
DIRECT COST SAVINGS
Inverted Duty
Value of Foreign Parts/Materials Used in Production
x Average Foreign Parts/Material Customs Duty Rate
= DUTY EXPENSE
LESS
Value of Foreign Parts/Materials Used in Production
x Finished Product Customs Duty Rate
Cash Flow
Average On-Hand Imported Merchandise Inventory
$25,000,000
$0
x Average (or Individual) Parts/Material Customs Duty Rate
6.00%
$1,500,000
x Interest Rate
6.00%
0.00%
= FTZ CASH FLOW SAVINGS
$90,000
$0
FTZ BORROWINGS REDUCTION SAVINGS
$1,500,000
Exports = 20% of Annual Merchandise Imports of Foreign Components
x Finished Product Customs Duty Rate
= FTZ EXPORT SAVINGS
$20,000,000
$0
4.90%
$980,000
$980,000
$980,000
Direct Delivery
Annual Inventory
$100,000,000
One Day Transit Time Savings Equal One Days Less Inventory to Support
Same Business
= SAVINGS
©©2013
2013
÷ 365
$273,973
$273,973
$273,973
Foreign vs. U.S. Production
Value of Foreign Finished Products Imported
$200,000,000
$0
4.90%
$9,800,000
$9,800,000
$9,800,000
$100,000,000
$0
4.90%
$4,900,000
= DUTY EXPENSE
$4,900,000
$4,900,000
= FTZ U.S. PRODUCTION SAVINGS
$4,900,000
$4,900,000
3.00%
$3,000,000
x Average Foreign Parts/Material Customs Duty Rate
6.00%
$180,000
©©2013
2013
= FTZ
SAVINGS
$180,000
$180,000
x Finished Product Customs Duty Rate
= DUTY EXPENSE
LESS
Value of Foreign Parts/Materials Used in U.S. FTZ Production
x Finished Product Customs Duty Rate (50%)
Scrap/Waste/Obsolete/Surplus = 3% of Annual Merchandise Imports of
Foreign
Components
Merchandise Processing Fee = Value of Imported Merchandise
(Daily
Entry)
(Weekly
Entry)
(Per CBPF 7501 Customs Entry)
x .3464% Ad Valorem (Assumes the $485.00 Maximum)
$485
$485
x Number of Customs Entries Filed Annually
1,500
50
$727,500
$24,250
= EXPENSE
= FTZ MPF SAVINGS
$703,250
Customs Broker Entry Fee
$100
$100
$100
x Number of Customs Entries Filed Annually
1,500
50
0
150,000
$5,000
= EXPENSE
= FTZ BROKERAGE FEE SAVINGS
State and Local Ad Valorem Taxation = Average On-Hand Imported Merchandise
x Tax Rate
2013
= FTZ TAX ©
SAVINGS
©2013
$145,000
$25,000,000
1.00%
$250,000
$250,000
$250,000
FTZ SAVINGS RECAP
Inverted Duty
$1,100,000
Cash Flow/Borrowings Reduction
$1,500,000
Exports
$980,000
Direct Delivery
$273,973
Foreign vs. U.S. Production
$4,900,000
Scrap/Waste/Obsolete/Surplus
$180,000
Merchandise Processing Fee (Weekly Entry)
$703,250
Customs Broker Entry Fee (Weekly Entry)
$145,000
State and Local Ad Valorem Taxation
$250,000
©TOTAL
2013
FTZ SAVINGS
$10,032,223
FTZ ADVANTAGES
n
n
n
n
n
n
n
n
n
n
n
n
n
n
Cash Flow
Exports
Waste/Scrap/Defects/Damage/
Obsolescence
Inverted U.S. Customs Duty Savings
Nondutiability of Labor, Overhead,
and Profit
Reduced Cycle Time
Weekly Entries
Harbor Maintenance Fee
Taxation
Production Machinery
International Returns
Country-of-Origin Marking/Labeling
Security
Antidumping/Countervailing duties
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
©©2013
2013
Spare Parts
U.S. Quota
Quality Control
Inventory Control
Entireties Provision
Exhibition
Insurance Costs
Zone-to-Zone Transfer
Temporary Removal Procedure
Compliance with Federal Laws
Enterprise Zone Coordination
Transfer of Title
Record Identity Accounting
No Time Limit
Changing Circumstances
Direct Delivery
TYPES OF
APPLICATIONS
SCOTT S. TAYLOR, ESQ.
MILLER AND COMPANY P.C.
Sonoma County
February 4, 2013
© 2013
TYPES OF FTZ
APPLICATIONS/FILINGS
n General-Purpose Zone
n Subzone
n Production Notification Application
n Manufacturing Requests
n Expansion Applications
n Minor Boundary Modification Requests
n Usage-Driven Sites - ASF
n Scope Determinations
© 2013
BASIC REQUIREMENTS OF
APPLICATION
n General-Purpose Zone
n 60 miles/90 minutes from Customs Port of Entry
n Need for zone services
n Warehousing only approval
n For production, additional data required
n Special-Purpose Subzone
n Operation cannot be accommodated at zone site
n Need for zone services
n Warehousing only approval
n For production, additional data required
© 2013
BASIC REQUIREMENTS OF
MANUFACTURING APPLICATION
n Application Data Requirements
n
n
n
n
n
n
n
Company background
Product description
Industry background
Zone benefits to company
Public benefits
Impact on domestic industry
Use of public zone
© 2013
Alternative Site
Framework
SCOTT S. TAYLOR, ESQ.
MILLER AND COMPANY P.C.
Sonoma County
February 4, 2013
© 2013
Key Points
n Goal for Alternative Site Framework (ASF): Improve
grantees’ ability to bring competitiveness benefits of
FTZs to broad range of companies.
n FTZ Staff consulted with grantees and others to
develop zone-site management option that is flexible
(for users), focused (for oversight purposes), and
predictable (for everyone’s benefit).
n FTZ space can be designated or modified through
FTZ staff action (with concurrence of CBP Port
Director).
© 2013
Terms and Concepts
n “Service Area” is the geographic area where grantee intends to
propose general-purpose FTZ sites.
n
n
n
City and County of San Francisco and San Mateo County
Pending ASF Service Area Expansion: Contra Costa, Marin
and Solano Counties, as well as portions of Napa and
Sonoma Counties, California
The reason to define Service Area up front is to eliminate
need for full FTZ Board processes (Federal Register notices,
public comment periods, etc.) when new potential zone
users appear and need FTZ designation quickly.
© 2013
Example of Magnet Site
© 2013
“Magnet” Site
n A “Magnet” site is one selected by grantee
based on ability to attract multiple potential
FTZ operators/users.
n
Designated only via FTZ Board (Customs
ITA/Treasury review) action.
n
Similar to traditional FTZ site (industrial park,
port facility, etc.) designated in advance –
essentially speculatively – to attempt to draw
FTZ operators/users.
© 2013
“Usage-Driven” Site
n A “Usage-Driven” site is designated for a company
ready to purse conducting FTZ activity.
n
Can be designated via simplified boundary
modification.
n
Designation tied to the specific company and limited to
the space needed by the company.
n
Under ASF, site is general-purpose if adjacent space
has potential for future FTZ use.
© 2013
Example of a Usage-Driven Site
© 2013
Sunset Provision
n Ongoing “Sunset” test remove unused sites.
n
Standard five-year sunset period for Magnet sites
(applicant can request longer on case-specific basis).
n Activation
n
Three-year sunset period for all Usage-Driven sites.
n Activity required – (Zone Admission)
n
Activation/activity during any period serves to reset the
sunset deadline by an additional five years (Magnet) or
three years (Usage-Driven).
© 2013
INFORMATION REQUIRED FOR
USAGE-DRIVEN APPLICATION
n
Address. Please provide the address of the facility.
n
Acreage. Please provide the total number of acres of the facility, including any outside land
that should be included for potential outside storage in a fenced area.
n
Activity Description. Please provide a descriptive summary of activities that will occur at
the site, including warehousing, packaging, testing, repairs, kitting, manufacturing, and
distribution operations and the type of products.
n
Type of Land. Is the company located in an industrial park? Yes or No. If yes, please
provide the name of the industrial park.
n
Zoning. Please provide the name of the local property zoning designation.
© 2013
INFORMATION REQUIRED FOR
USAGE-DRIVEN APPLICATION
n
Property Owner. Please provide the name of the property owner. Please provide a property
owner concurrence letter or an operator “right-to-use” letter.
n
Site Plan. Please provide a site plan of the boundaries of the property that will be designated
as a foreign-trade zone. This boundary should be highlighted in a red outline, as required by
the Foreign-Trade Zones Board. This site plan should also include sufficient detail to show
surrounding street names that are clearly marked. There should also be a north-south-eastwest arrow located on the map for reference. Any other reference points are important. The
site plan does not have to include any level of detail within the building. The building outline is
sufficient for this particular application. The red outlined area should include an acreage total
that matches the acreage total provided in item No. 2. It should also match the legal
description provided in No. 8. If the area is different, please explain the difference.
© 2013
Opportunities & Benefits of ASF
Intended & Unintended
n For Companies
n
n
n
n
n
Warehousing/Distribution in 30 days
Manufacturing under T/IM in 75 days
No filing fee
Possible production equipment benefit
Lower cost entry for companies
n
Free or $1600 vs. $6500 for Subzone
n
Costs of Application preparation
n
Simplifies information gathering process
© 2013
98 Alternative Site Framework Applications
Filed at the Foreign-Trade Zones Board
62% of Total Active FTZ Projects
ZONE NO.
GRANTEE
SERVICE AREA
FTZ 234
Gregg County, Texas
Gregg County, Texas
FTZ 260
City of Lubbock, Texas
Garza, Hale, Hockley,
Lubbock and Terry Counties
FTZ 39
Dallas/Fort Worth International
Airport Board
Dallas, Tarrant, Kaufman, Collin,
Grayson, and Denton Counties
FTZ 54
Clinton County, New York
Clinton County, New York
FTZ 274
City and County of Butte-Silver
Bow
Silver Bow County, Montana
FTZ 174
Tucson Regional Economic
Opportunities, Inc.
Pima County, Arizona
FTZ 17
Greater Kansas City ForeignTrade Zone, Inc.
Wyandotte, Johnson, Douglas,
Shawnee, Leavenworth, and
Miami Counties, Kansas
© 2013
DOCKET/
BOARD ORDER/
APPROVED
Docket 27-2009
Board Order No. 1659
Approved: 1/15/2010
Docket 28-2009
Board Order No. 1668
Approved: 2/23/2010
Docket 29-2009
Board Order No. 1660
Approved: 1/15/2010
Docket 31-2009
Board Order No. 1697
Approved: 07/08/2010
Docket 33-2009
Board Order No. 1661
Approved: 2/5/2010
Docket 43-2009
Board Order No. 1685
Approved: 6/4/2010
Docket 45-2009
Board Order No. 1696
Approved: 07/8/2010
Alternative Site Framework Applications
Filed at the Foreign-Trade Zones Board
ZONE NO.
GRANTEE
SERVICE AREA
FTZ 121
Capital District Regional
Planning Commission
FTZ 37
County of Orange, New
York
Albany, Columbia, Greene, Fulton, Montgomery,
Rensselaer, Saratoga, Schenectady, Warren and
Washington Counties, New York
Orange County, New York
Expanded to Include: Duchess County
FTZ 2
Board of Commissioners of
the Port of New Orleans
Orleans, Jefferson and St. Bernard Parishes,
Louisiana
FTZ 176
Greater Rockford Airport
Authority
Winnebago, Stephenson, Ogle, Lee, DeKalb, and
Boone Counties, and portions of Bureau, McHenry
and Kane Counties, Illinois
Expanded to Include LaSalle and Putnam Counties
FTZ 113
Ellis County Trade Zone
Corporation
Ellis County, Texas
FTZ 170
Ports of Indiana
Jackson, Washington, Harrison, Floyd, Clark and
Scott Counties, Indiana
Expanded to Include: Jefferson, Ripley, Dearborn,
Brown, Ohio, and Switzerland Counties
FTZ 196
Alliance Corridor, Inc.
Denton and Tarrant Counties,
Texas
© 2013
DOCKET/
BOARD ORDER/
APPROVED
Docket 47-2009
Board Order No. 1694
Approved: 07/08/2010
Docket 51-2009
Board Order No. 1680
Approved: 05/13/10
Docket 42-2011
Board Order No. 1796
Approved: 10/24/11
Docket 58-2009
Board Order No. 1678
Approved: 05/13/10
Docket 1-2010
Board Order No. 1702
Approved: 08/19/10
Docket 62-2010
Board Order No. 1755
Approved: 04/18/2011
Docket 4-2010
Board Order No. 1708
Approved: 09/24/10
Docket 12-2010
Board Order No. 1704
Approved: 09/03/10
Docket 37-2011
Board Order No. 1781
Approved: 09/30/11
Docket 18-2010
Board Order No. 1712
Approved: 10/18/10
Alternative Site Framework Applications
Filed at the Foreign-Trade Zones Board
ZONE NO.
GRANTEE
SERVICE AREA
DOCKET/
BOARD ORDER/
APPROVED
FTZ 26
Georgia Foreign-Trade
Zone, Inc.
Haralson, Paulding, Polk, Bartow, Floyd, Chattooga, Gordon,
Pickens, Gilmer, Fannin, Murray, Whitfield, Catoosa, Walker,
Dade, Forsyth, Dawson, Hall, Lumpkin, Union, White, Habersham,
Banks, Franklin (in part), Cherokee, Gwinnett, Fulton, Clayton,
Fayette, Henry, Cobb, Douglas, DeKalb, Rockdale, Spalding,
Troup, Coweta, Carroll, Heard, Meriwether, Pike, Lamar, Butts,
Upson, Newton, Jasper, Morgan, Walton, Barrow, Oconee, Clarke,
Greene, Oglethorpe, Madison, Jackson, Monroe, Bibb, Putnam,
Jones, Baldwin, Crawford, Peach, Wilkinson (in part), Twiggs (in
part), Houston (in part), Muscogee, Harris, Talbot, Taylor, Marion
(in part) and Richmond Counties, Georgia
Docket 22-2010
Board Order No. 1725
Approved: 11/26/10
FTZ 75
City of Phoenix
FTZ 144
Brunswick and Glynn
County Development
Authority
Economic
Development Authority
of Western Nevada
Ports of Indiana
FTZ 126
FTZ 177
Expanded to Include: a portion of Columbia County
Maricopa County and portions of Pinal and Yavapai Counties,
Arizona
Appling, Atkinson, Brantley, Camden, Charlton, Coffee, Glynn, Jeff
Davis, McIntosh, Ware and Wayne Counties, Georgia
Carson City, Douglas and Storey Counties as well as portions of
Churchill, Lyon and Washoe Counties, Nevada
Vanderburgh, Dubois, Pike, Gibson, Knox, Daviess, Spencer,
Warrick and Posey Counties, Indiana
Expanded to Include: Sullivan, Perry, Crawford, Orange, and
Martin Counties
FTZ 125
St. Joseph County
Airport Authority
St. Joseph, Elkhart, Kosciusko, Marshall, La Porte and Starke
Counties, Indiana © 2013
Docket B-52-2012
Approved: 8/29/12
Docket 24-2010
Board Order No. 1716
Approved: 10/07/10
Docket 25-2010
Board Order No. 1742
Approved: 02/04/11
Docket 26-2010
Board Order No. 1703
Approved: 08/19/10
Docket 27-2010
Board Order No. 1721
Approved: 10/29/10
Docket 3-2011
Board Order No. 1767
Approved: 06/03/11
Docket 29-2010
Board Order No. 1720
Approved: 10/29/10
Alternative Site Framework Applications
Filed at the Foreign-Trade Zones Board
ZONE NO.
GRANTEE
SERVICE AREA
FTZ 5
Port of Seattle
King and Snohomish Counties,
Washington
FTZ 152
Ports of Indiana
Lake, Porter, La Porte, Newton, Jasper
and Starke Counties, Indiana
Expanded to Include: Pulaski and
Fulton Counties
DOCKET/
BOARD ORDER/
APPROVED
Docket 30-2010
Board Order No. 1717
Approved: 10/07/10
Docket 32-2010
Board Order No. 1723
Approved: 11/15/10
Docket 2-2011
Board Order No. 1763
Approved: 05/20/11
Docket 33-2010
Board Order No. 1738
Approved: 01/12/11
FTZ 22
Illinois International Port
District
Cook, Du Page, Grundy, Kankakee,
Kendall, Lake and Will Counties and
portions of McHenry and Kane
Counties, Illinois
FTZ 14
Arkansas Economic
Development Commission
Clark, Conway, Dallas, Faulkner,
Garland, Grant, Hot Spring, Jefferson,
Lonoke, Montgomery, Nevada, Pike,
Pulaski, Pope, Saline, Yell and White
Counties, Arkansas
Docket 34-2010
Board Order No. 1729
Approved: 12/20/10
FTZ 38
South Carolina State Ports
Authority
Greenville, Spartanburg, Cherokee,
Oconee, Union, Anderson, and Laurens
Counties, South Carolina
Docket 37-2010
Board Order No. 1710
Approved: 10/07/10
FTZ 3
San Francisco Port
Commission
City and County of San Francisco and
the County of San Mateo, California
FTZ 46
Greater Cincinnati FTZ, Inc.
Hamilton, Butler, Warren, Brown and
Clermont Counties
Docket 39-2010
Board Order No. 1718
Approved: 10/07/10
Docket 41-2010
Board Order No. 1746
Approved: 03/03/2011
© 2013
Alternative Site Framework Applications
Filed at the Foreign-Trade Zones Board
ZONE NO.
GRANTEE
SERVICE AREA
FTZ 244
March Joint Powers Authority
Western Riverside County
FTZ 138
Columbus Regional Airport
Authority
FTZ 136
Canaveral Port Authority
Athens, Champaign, Clark, Coshocton, Crawford,
Delaware, Fairfield, Franklin, Guernsey, Highland,
Hocking, Knox, Licking, Logan, Madison, Marion,
Morrow, Muskingum, Perry, Pickaway, Pike, Ross,
Union, Vinton and Wyandot Counties
Brevard County
FTZ 181
Northeast Ohio Trade &
Economic Consortium
FTZ 72
Indianapolis Airport Authority
FTZ 104
FTZ 203
Savannah Airport Commission
Port of Moses Lake Public
Corporation
Ashtabula, Trumbull, Mahoning, Columbiana,
Portage, Summit, Stark, Medina, Wayne and
Richland Counties
Bartholomew, Benton, Boone, Carroll, Cass, Clay,
Clinton, Decatur, Delaware, Fayette, Fountain,
Franklin, Grant, Greene, Hamilton, Hancock,
Hendricks, Henry, Howard, Jennings, Johnson,
Lawrence, Madison, Marion, Miami, Monroe,
Montgomery, Morgan, Owen, Parke, Putnam, Rush,
Shelby, Tippecanoe, Tipton, Vigo, Warren, Wayne,
and White Counties
Expanded to Include: Union and Vermillion Counties
Bulloch, Bryan, Chatham, Effingham, Evans, Liberty,
Long, and Screven Counties
Expanded to Include: Columbia and Richmond
Counties
Benton, Chelan, Columbia, Douglas, Franklin, Grant,
Kittitas, Lincoln and Walla Walla Counties, as well as
portions of Okanogan and Yakima Counties
© 2013
DOCKET/
BOARD ORDER/
APPROVED
Docket 45-2010
Board Order No. 1761
May 13, 2011
Docket 46-2010
Board Order No. 1726
Approved: 11/26/10
Docket 48-2010
Board Order No 1837
Approved: 06/18/12
Docket 49-2010
Board Order No. 1741
Approved: 2/22/11
Docket 50-2010
Board Order No. 1747
Approved: 03/03/11
Docket B-71-2012
Approved: 09/27/12
Docket 51-2010
Board Order No. 1736
Approved: 01/12/11
Docket B-50-2012*
Docket 56-2010
Board Order No. 1764
Approved: 05/20/11
ZONE NO.
Alternative Site Framework Applications
Filed at the Foreign-Trade Zones Board
GRANTEE
SERVICE AREA
FTZ 51
Duluth Seaway Port Authority
Carlton and Lake Counties, as well as portions of
Itasca and St. Louis Counties
FTZ 102
St. Louis County Port Authority
City of St. Louis and St. Louis County
FTZ 64
Jacksonville Port Authority
Baker, Clay, Columbia, Duval, and Nassau
Counties
Expanded to Include: Putnam, St. Johns, and
Bradford Counties
FTZ 50
Port of Long Beach
Orange County and portions of Los Angeles and
San Bernardino Counties
FTZ 86
Port of Tacoma
Pierce County
FTZ 279
Houma-Terrebonne Airport
Commission
Terrebonne Parish
FTZ 153
City of San Diego
San Diego County and a portion of Riverside
County
FTZ 53
City of Tulsa-Rogers County Port
Authority
Rogers County
FTZ 182
City of Fort Wayne
Adams, Allen, DeKalb, Huntington, Noble, Wabash,
Wells, and Whitley Counties
FTZ 137
Washington Dulles Foreign Trade
Zone Inc.
Frederick, Clarke, Loudoun, Fairfax, Fauquier,
Prince William, and Arlington Counties and the City
© 2013
of Alexandria
DOCKET/
BOARD ORDER/
APPROVED
Docket 58-2010
Board Order No. 1758
Approved: 05/06/11
Docket 61-2010
Board Order No. 1772
Approved: 06/22/11
Docket 63-2010
Board Order No. 1759
Approved: 05/06/11
Docket 18-2012
Board Order No. 1840
Approved: 07/05/12
Docket 65-2010
Board Order No. 1762
Approved: 05/13/11
Docket 68-2010
Board Order No. 1765
Approved: 05/20/11
Docket 69-2010
Board Order No. 1771
Approved: 07/17/11
Docket 1-2011
Board Order No. 1766
Approved: 06/03/11
Docket 8-2011
Board Order No. 1785
Approved: 09/30/11
Docket 13-2011
Board Order No. 1770
Approved: 06/22/11
Docket 19-2011
Board Order No. 1787
Approved: 09/30/11
ZONE NO.
Alternative Site Framework Applications
Filed at the Foreign-Trade Zones Board
GRANTEE
SERVICE AREA
FTZ 47
Greater Cincinnati Foreign
Trade Zone, Inc.
Boone, Kenton, and Campbell Counties
FTZ 106
Port Authority of Greater
Oklahoma City
FTZ 41
Foreign-Trade Zone of
Wisconsin, Ltd.
Blaine, Caddo, Canadian, Cleveland,
Comanche, Custer, Garfield, Garvin,
Grady, Kay, Kingfisher, Lincoln, Logan,
McClain, Noble, Oklahoma, Payne,
Pontotoc, Pottawatomie, Seminole, and
Stephens Counties
Kenosha, Milwaukee, and Racine
Counties
FTZ 205
Oxnard Harbor District
Expanded to include: Dodge, Fond du
Lac, Jefferson, Ozaukee, Rock,
Sheboygan, Walworth, Washington
and Waukesha
Counties
Ventura County
FTZ 141
County of Monroe
Monroe County
FTZ 216
Port of Olympia
Thurston County and portions of Lewis,
Mason, and Kitsap Counties
FTZ 225
City of Springfield Airport
Board
Barry, Barton, Cedar, Christian, Dade,
Dallas, Douglas, Greene, Hickory,
Howell (partial), Jasper, Laclede,
Lawrence, McDonald, Newton, Ozark,
Polk, Stone, Taney, Texas (partial),
Vernon, Webster, and Wright Counties.
© 2013
DOCKET/
BOARD ORDER/
APPROVED
Docket 21-2011
Board Order No. 1774
Approved: 07/26/11
Docket 20-2011
Board Order No. 1816
02/29/12
Docket 23-2011
Board Order No. 1780
Approved 08/31/11
Docket B-40-2012
Board Order No. 1866
Approved: 11/5/12
Docket 25-2011
Board Order No. 1788
Approved: 10/13/11
Docket 29-2011
Board Order No. 1800
Approved: 11/29/11
Docket 31-2011
Board Order No. 1777
Approved 08/03/11
Docket 32-2011
Board Order No. 1782
Approved: 09/30/11
Alternative Site Framework Applications
Filed at the Foreign-Trade Zones Board
ZONE NO.
GRANTEE
SERVICE AREA
FTZ 59
Lincoln Foreign-Trade Zone,
Inc.
Lancaster, Otoe, and Seward
Counties
FTZ 161
Board of County
Commissioners of Sedgwick
County
Greater Maricopa ForeignTrade Zone, Inc.
Butler, Harvey, McPherson, Reno,
Saline, Sedgwick, and Sumner
Counties
Western Maricopa County
FTZ 119
Greater Metropolitan Area
Foreign-Trade Zone
Commission
FTZ 124
Port of South Louisiana
FTZ 215
Sebring Airport Authority
FTZ 77
City of Memphis
Isanti, Chisago, Sherburne,
Wright, Anoka, Washington,
Ramsey, Hennepin, McLeod,
Carver, Scott, Dakota, Sibley,
LeSueur, and Rice Counties
St. Charles, St. John the Baptist,
St. James, La Fourche and St.
Mary Parishes
DeSoto, Glades, Hardee, Hendry,
Highlands and
Okeechobee Counties and the
Cities of Belle Glade and
Pahokee
Shelby County
FTZ 74
Baltimore Development
Corporation
FTZ 277
City of Baltimore and the Counties
of Anne Arundel, Baltimore, Cecil
and Harford
© 2013
DOCKET/
BOARD ORDER/
APPROVED
Docket 33-2011
Board Order No. 1783
Approved: 09/30/11
Docket 34-2011
Board Order No. 1786
Approved: 09/30/11
Docket 36-2011
Board Order No. 1804
Approved: 12/16/11
Docket 40-2011
Board Order No. 1790
Approved: 10/13/11
Docket 44-2011
Board Order 1814
01/31/12
Docket 46-2011
Board Order No. 1805
Approved: 12/20/11
Docket 51-2011
Board Order No. 1817
Approved: 02/29/12
Docket 53-2011
Board Order No. 1831
Approved: 05/24/12
Alternative Site Framework Applications
Filed at the Foreign-Trade Zones Board
ZONE NO.
GRANTEE
SERVICE AREA
FTZ 118
Ogdensburg Bridge and Port
Authority
St. Lawrence County
FTZ 127
Richland-Lexington Airport
District
FTZ 275
Capital Region Airport
Authority
FTZ 272
Lehigh Valley Economic
Development Corporation
Aiken, Allendale, Bamberg,
Barnwell, Calhoun, Clarendon,
Edgefield, Fairfield, Kershaw, Lee,
Lexington, McCormick, Newberry,
Richland, Saluda, and Sumter
Counties
Clinton, Easton, Gratiot, Ingham,
Isabella (portions), Jackson,
Livingston, and Shiawassee
Counties
Lehigh and Northampton Counties
New Zone
Sebring Economic
Development Council, Inc.
Ada and Canyon Counties
FTZ 284
Genesee gateway Local
Development Corporation
Genesee County
FTZ 109
County of Jefferson
Jefferson County
FTZ 89
Nevada Development Authority
Clark County
© 2013
DOCKET/
BOARD ORDER/
APPROVED
Docket 56-2011
Board Order No. 1811
01/31/12
Docket 57-2011
Board Order No. 1826
04/16/12
Docket 58-2011
Board Order No. 1813
01/31/12
Docket 64-2011
Board Order 1812
01/31/12
Docket 65-2011*
Docket 69-2011
Board Order No. 1865
Approved: 12/4/2012
Docket 70-2011
Board Order No. 1823
04/16/12
Docket 77-2011
Board Order No. 1828
05/04/12
Alternative Site Framework Applications
Filed at the Foreign-Trade Zones Board
ZONE NO.
GRANTEE
SERVICE AREA
FTZ 281
Miami-Dade County
Northern half of Miami-Dade County
FTZ 99
State of Delaware
New Castle, Kent, and Sussex Counties
FTZ 226
Merced County Board of
Supervisors
FTZ 100
Greater Dayton Foreign-Trade
Zone, Inc.
FTZ 230
Piedmont Triad Partnership
FTZ 219
Greater Yuma Economic
Development Corporation
Portions of Fresno, Kings, Madera,
Mariposa, Merced, Stanislaus, and Tulare
Counties
Auglaize, Darke, Fayette, Greene, Mercer,
Miami, Montgomery, Preble, and Shelby
Counties
Alamance, Caswell, Davidson, Davie,
Forsyth, Guilford, Montgomery, Randolph,
Rockinham, Stokes, Surry, and Yadkin
Counties
Yuma County
FTZ 183
Foreign Trade Zone of Central
Texas, Inc.
Bastrop, Caldwell, Hayes, Travis, and
Williamson Counties
FTZ 202
Board of Harbor
Commissioners of the City of
Los Angeles
Iowa Foreign-Trade Zone
Corporation
Orange County and portions of Los
Angeles and San Bernardino Counties
FTZ 107
Adair, Adams, Audubon, Boone, Calhoun,
Carroll, Cass, Clarke, Dallas, Decatur,
Greene, Guthrie, Hamilton, Hardin, Jasper,
Lucas, Madison, Mahaska, Marion,
Marshall, Monroe, Polk, Poweshiek,
Ringgold, Story, Union, Warren, Wayne,
and Webster Counties
© 2013
DOCKET/
BOARD ORDER/
APPROVED
Docket 79-2011
Board Order No. 1844
Approved: 08/02/12
Docket 81-2011
Board Order No. 1839
Approved: 07/05/12
Docket 84-2011
Board Order No. 1824
Approved: 04/16/12
Docket 1-2012
Board Order No. 1837
Approved: 06/18/12
Docket 4-2012
Board Order No. 1835
Approved: 06/18/12
Docket 6-2012
Board Order No. 1850
Approved: 08/17/12
Docket 8-2012
Board Order No. 1843
Approved: 07/23/12
Docket 9-2012
Board Order No. 1838
Approved: 07/05/12
Docket 10-2012
Board Order No. 1858
Approved: 09/20/12
Alternative Site Framework Applications
Filed at the Foreign-Trade Zones Board
ZONE NO.
GRANTEE
SERVICE AREA
FTZ 189
Kent-Ottawa-Muskegon
Foreign-Trade Zone Authority
Kent, Ottawa, and Muskegon Counties
FTZ 148
Industrial Development Board
of Blount County and the Cities
of Alcoa and Maryville,
Tennessee
Tri-Cities Airport Commission
FTZ 151
Findlay/Hancock County
Chamber of Commerce
Anderson, Blount, Campbell, Claiborne,
Cocke, Cumberland, Grainger, Jefferson,
Knox, Loudon, Monroe, Morgan, Roane,
Scott, Sevier, and Union Counties
Sullivan, Hawkins, Greene, Washington,
Unicoi, Carter, Hamblen, and Johnson
Counties
Hardin, Putnam, Seneca, Allen, and
Hancock Counties
FTZ 94
City of Laredo
Webb County
FTZ 79
City of Tampa
Hillsborough and Polk Counties
FTZ 149
Port Freeport
Brazoria and Fort Bend Counties
FTZ 18
City of San Jose
City of San Jose
FTZ 155
Calhoun-Victoria Foreign Trade
Zone, Inc.
Calhoun, Victoria, and Matagorda Counties
FTZ 200
County of Mercer
Mercer County
FTZ 204
© 2013
DOCKET/
BOARD ORDER/
APPROVED
Docket 12-2012
Board Order No. 1846
Approved: 08/17/12
Docket 16-2012
Board Order No. 1841
Approved: 07/23/12
Docket 19-2012*
Docket 20-2012
Board Order No. 1855
Approved: 08/29/12
Docket 22-2012
Board Order No. 1852
Approved: 08/29/12
Docket 24-2012*
Docket 27-2012
Board Order No. 1853
Approved: 08/29/12
Docket 28-2012
Board Order No. 1842
Approved: 07/23/12
Docket 29-2012
Board Order No. 1854
Approved: 08/29/12
Docket 30-2012*
Alternative Site Framework Applications
Filed at the Foreign-Trade Zones Board
ZONE NO.
GRANTEE
SERVICE AREA
DOCKET/
BOARD ORDER/
APPROVED
Docket B-32-2012
Board Order No. 1856
Approved: 09/20/12
Docket 13-2013
Board Order No. 1872
Approved: 11/30/2013
FTZ 129
Port of Bellingham
Whatcom County
FTZ 93
Triangle J Council of
Governments
FTZ 220
Sioux Falls Development
Foundation
FTZ 36
Board of Trustees of the
Galveston Wharves
Chatham, Durham, Franklin,
Granville, Harnett, Johnston, Lee,
Moore, Orange, Person, Vance,
Wake and Warren Counties,
Bon Homme, Brookings, Clay,
Davison, Duel, Hamlin, Hanson,
Hutchinson, Kingsbury, Lake,
Lincoln, McCook, Miner,
Minnehaha, Moody, Sanborn,
Turner, Union, and Yankton
Counties
Galveston County
FTZ 139
Sierra Vista Economic
Development Foundation, Inc.
Cochise County
FTZ 70
Greater Detroit Foreign-Trade
Zone, Inc.
Macomb, Monroe, Oakland,
Washtenaw, and Wayne Counties
Docket B-46-2012*
FTZ 241
City of Fort Lauderdale
Portions of Broward County
Docket B-48-2012*
FTZ 8
Toledo-Lucas County Port
Authority
Sandusky, Henry, Wood, Lucas,
and Defiance Counties
Docket B-49-2012*
FTZ 32
Greater Miami Foreign-Trade
Zone, Inc.
Miami-Dade County
Docket B-51-2012*
NEW ZONE
Chenango County, New York
Chenango County
© 2013
Docket B-56-2012*
Docket B-35-2012
Board Order No. 1857
Approved: 09/20/12
Docket B-41-2012
Board Order No. 1863
Approved: 10/26/12
Docket B-43-2012*
Alternative Site Framework Applications
Filed at the Foreign-Trade Zones Board
ZONE NO.
GRANTEE
SERVICE AREA
FTZ 43
City of Battle Creek, Michigan
FTZ 90
County of Onondaga
Allegan, Barry, Berrien, Branch,
Calhoun, Cass, Clinton, Eaton,
Ingham, Ionia, Jackson,
Kalamazoo, St. Joseph and Van
Buren Counties
Onondaga, Cayuga, Oswego, and
Madison Counties
FTZ 133
Quad-City Foreign-Trade Zone,
Inc.
FTZ 283
Northwest Tennessee Regional
Port Authority
FTZ 35
Philadelphia Regional Port
Authority
FTZ 185
County of Culpeper
Henderson, Henry, Mercer, Rock
Island and Warren Counties, Illinois
and Cedar, Clinton, Des Moines,
Dubuque, Henry, Jackson,
Johnson, Jones, Lee, Louisa,
Muscatine, Scott, and Washington
Counties, Iowa
Dyer, Gibson, Haywood, Lake,
Lauderdale, Madison, Obion, and
Tipton Counties
Philadelphia, Delaware, Bucks,
Montgomery, Chester, Lancaster,
and Berks Counties
Albemarle, Augusta, Bath,
Caroline, Culpeper, Fluvanna,
Greene, Highland, King George,
Louisa, Madison, Nelson, Orange,
Page, Rappahannock, Rockbridge,
Rockingham, Shenandoah,
Spotsylvania, Stafford and Warren
Countyies
© 2013
DOCKET/
BOARD ORDER/
APPROVED
Docket B-57-2012
Board Order No. 1870
Approved: 11/30/12
Docket B-61-2012*
Docket B-63-2012*
Docket 59-2011
Board Order No. 1851
Approved: 10/11/12
Docket B-75-2012*
Docket B-78-2012*
Alternative Site Framework Applications
Filed at the Foreign-Trade Zones Board
ZONE NO.
GRANTEE
SERVICE AREA
FTZ 147
FTZ Corp of Southern
Pennsylvania
New Zone
Tunica County
Berks, Cumberland, Dauphin,
Franklin, Lancaster, and York
Counties
Tunica County
FTZ 171
Liberty County Economic
Development Corporation
Liberty and Chambers Counties
© 2013
DOCKET/
BOARD ORDER/
APPROVED
Docket B-79-2012*
Docket B-82-2012*
Docket B-85-2012*
Activation Process
Once a company locates in a zone site, it is
in a “designated” site. Any individual
company must still “activate” with local U.S.
Customs and Border Protection to use the
FTZ program.
© 2013
FTZ ACTIVATION PROCESS
n 19 C.F.R. § 146.6
n FTZ Operations Manual
n Site Plan
n Purpose of Activation/
Manufacturing Authority
n Grantee Concurrence
n Background Investigation
n Cargo Security Review
n FTZ Operator’s Bond
©©2013
2013
APPLICATION FOR ACTIVATION
n Site Plans
n
A legal description and site plan detailing the
area for which activation is requested.
n Purpose of Activation
n
A description of the proposed zone activity.
n Procedures Manual
n
A manual that describes how the zone
operation will be conducted.
© 2013
APPLICATION FOR ACTIVATION
n Concurrence of Grantee Organization
n
A letter from the Grantee organization that
acknowledges the activation of the operator.
n Background Investigation
n
Certain information on key employees must be
submitted for Customs to conduct background
investigations.
n Security Inspection
n
A description of the security features of a zone
operation.
© 2013
APPLICATION FOR ACTIVATION
n FTZ Operator’s Bond
n
A discussion of the required Foreign-Trade
Zone Operator’s Bond and justification for its
approval.
n FIRMS Code
n
Customs must be requested to assign a
Facilities Information Resource Management
System (FIRMS) Code Upon approval of the
activation.
© 2013
APPLICATION FOR ACTIVATION
n Authority to Manufacture (if applicable)
n
A description of the manufacturing process, if
manufacturing will occur.
n Statistical Reporting
n
Certain data is required by the Bureau of
Census.
n Zone Inventory Management
n
A description of how the merchandise will be
tracked as foreign-trade zone inventory.
© 2013
APPLICATION FOR ACTIVATION
n Automated Commercial System Commitment
n
A commitment for establishment of an
electronic interface with Customs through the
Automated Commercial System (ACS) must
be made.
n Request for Specific Authorities
n
There are specific authorities or options that
may be requested of Customs, such as the
ability to break and affix Customs seals by the
Operator, yearly blanket admission
authorization, direct delivery and weekly entry.
© 2013
Production Authority
This is an extra incentive for a manufacturer
to locate in the
Sonoma County, California area.
© 2013
Background
n Department of Commerce initiative to reduce
program costs for small/medium manufacturers
(SMMs)
n FTZ Staff directed to benchmark U.S. program with
similar programs and procedures abroad
n Researched programs in 77 countries
n Main finding: Some countries provide SMMs with
quicker and simpler access to zone procedures
© 2013
New Notification Procedure
May 1, 2012
n Non-controversial
n Applies to ALL industries
n
n
n
n
Six-digit HTSUS specificity
Does not have to be “similar” to already
approved activity like T/IM
40 Day Public Comment Period
120 Day Approval Process
n If negative comments are received a full
Manufacturing Request may have to be
filed.
© 2013
New FTZ Application Process
n Is the facility in an ASF service area?
n
n
Subzone
Usage-driven site
n Production Involved?
n
n
New notification procedure = 4 months
Can expedite with letter from Customs
n If objection to new modification procedure
then a full application is required
© 2013
Financial Costs – Start Up
n Zone Application
n
n
Preparation
Fee to Foreign-Trade Zones Board
n
Subzones $6,500 (15 C.F.R. § 400.25)
n
Expansions $1,600 (15 C.F.R. § 400.26(b))
n
ASF - $0 – “Priceless”
n Structuring Management System
n Modification to Existing Software or New Software
n Application for Activation/FTZ Operations Manual
n Training
© 2013
Financial Costs - Ongoing
n Annual Fee to Grantee
n Management Salary/Benefits
n Oversight/Audit/Training
n IT Expense
n FTZ Operators Bond
n Advice/Counsel
© 2013
CONTACT INFORMATION
Scott S. Taylor, Esq.
phone: (816) 561-4999
email: [email protected]
Miller & Company, P.C.
4929 Main Street
Kansas City, Missouri 64112
www.millerco.com
81065
© 2013