5K Logistics – Customs Designated General Purpose FTZ
A U.S. Foreign-Trade Zone (FTZ or Zone) is a designated area which, for Customs purposes, is considered outside the U.S. Nearly any imported merchandise can be brought into a Zone for almost any kind of manipulation, duty-free.
* Please Notice the Links of Interest for more Foreign Trade Zone information
Background and Terminology
U.S. FTZs are made possible by the FTZ Act of 1934 as amended. The Act establishes the U.S. Foreign-Trade Zones Board (FTZ Board) as the agency responsible for the establishment and administration of Zones through the Board's regulations. The Board does not handle day-to-day administration of any Zones, but provides grants to Grantees to establish, operate, and maintain Zones. Grantees are almost always public corporations or governmental agencies. A Grantee will usually enter into an agreement with an Operator or Subzone for actual Zone operation. Customs holds the Operator responsible for compliance with the Customs regulations relating to Zones. A Zone User uses a Zone for its benefits and pays the Grantee or Operator for their services such as rent on facilities, storage, handling, etc.
Types of Zones
There are two General Purpose sites and Subzones. A General Purpose site is usually run by an Operator with Multiple Users. A Subzone is a special purpose site for operations such as manufacturing which cannot be accommodated within an existing Zone. In a Subzone, the Operator and User are usually the same entity. |
