Foreign Trade Zone Pilot Agreements

In the United States, the Foreign Trade Zone Board is led by the Secretary of Commerce and the Secretary of the Treasury. In January 2009, the Foreign Trade Zones Board adopted a proposal from THE FTZ Board of Directors to make the Alternative Site Framework (ASF) a means of designating and managing general RDT sites through reorganization. The FSA offers greater flexibility for granting an external trade area to meet certain area status requirements, using the process of minor border modification. The ASF theory is that with a closer link between the amount of space designated by FTZ and the amount of space with customs and border guards activated, area users would have better access to benefits and faster. When a FTZ fellow considers whether or not to expand its FTZ project to improve the potential for existing companies to use the area and determine how it attracts potential new businesses, the Alternative Site Framework (FSA) should be considered. The FSA may be an appropriate option for some projects in the foreign trade area, but the decision on whether to adopt the new framework and site configuration requires careful analysis and planning. Regardless of the decision to expand the FTZ project, the sites should be selected and the application should be formulated in such a way as to obtain early authorization while maximizing the benefits for those in the area. Successful zone projects are usually the result of a plan developed and implemented by people who understand all aspects of the FTZ program. [16] Before any change in handling or manufacture that would alter its customs nomenclature, an importer may ask the port manager to introduce goods into the area which enjoys a privileged foreign status. The goods are classified and assessed and duties and taxes are determined from the date of notification. If these goods are transferred out of the zone for U.S. consumption, either in its original state or after manipulation or production of applicable duties and taxes would be paid on the basis of the rate set at the time of granting a privileged foreign status.

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Benjamin Sanchez