FOREIGN-TRADE ZONE DEFINITIONS
To bring merchandise into a zone with zone status.
These procedures provide the framework for Customs to eliminate the on-site supervision of zones, and for zone operators and users to increase zone operating flexibility.
Conditionally Admissible Merchandise
Merchandise which may be imported into the United States under certain conditions. Merchandise which is subject to permits or licenses, or which must be reconditioned to bring it into compliance with the laws administered by various Federal agencies.
A legal fiction which permits acceptance of a Customs entry for merchandise in a zone before its physical transfer to the Customs territory. Constructive transfer is deemed to have occurred when Customs receives an entry in proper form. If the Entry is not accepted, it will be deemed constructively transferred back to the zone in its previous zone status.
An action or omission that will result in a claim for duties, taxes, charges, or liquidated damages under the FTZ Operators bond.
Merchandise which has been produced in the United States and not exported therefrom; or merchandise imported into the United States and duty paid at the time of entry.
Merchandise produced in the United States; and imported merchandise properly released from Customs custody on which all applicable duties and taxes have been paid.
The value of merchandise imported into the United States upon which duty is owed. For merchandise produced in a foreign-trade zone, the dutiable value is the sum of the value of the non-duty paid foreign material contained in the manufactured product. It does not include domestic value added in the zone.
Imported merchandise which has not been entered into the Customs territory of the United States. It may have privileged, non-privileged or zone restricted status.
Foreign-Trade Zones Board
The Foreign-Trade Zones Board is responsible for the oversight of the Foreign-Trade Zones program, including the issuance of grants of authority. The Board consists of the Secretary of Commerce and the Secretary of the Treasury.
Merchandise which for commercial purposes is identical and interchangeable in all situations.
A corporation to which the privilege of establishing, operating, and maintaining a Foreign-Trade Zone has been granted by the Foreign-Trade Zones Board. The Grantee of Foreign-Trade Zone No. 233 is Dothan/Houston County Foreign Trade Zone, Inc.
Harmonized Tariff Schedule of the US (HTSUS)
The HTSUS is an international classification system of imported commodities that is used to determine the tariff that is assessed by the government for these commodities. A Harmonized Code is a specific classification for a specific type of commodity.
Merchandise includes goods, wares, and chattels of every description, except prohibited merchandise. For Dothan Warehouse, merchandise is referred to as item numbers or merchandise.
Mixed Status Merchandise
Foreign merchandise that has been combined with Domestic merchandise in the zone is sometimes referred to as Mixed Status merchandise.
Non-Privileged Foreign Status (NPF)
Foreign merchandise upon which the duty and applicable taxes will be determined at the time that the merchandise enters the Customs territory of the United States from the zone for consumption.
A corporation, partnership, or person that operates a zone or subzone under the terms of an agreement with the grantee. The operator of Foreign-Trade Zone No. 233 is the Dothan Warehouse.
Privileged Foreign Status (PF)
Foreign merchandise upon which the duty and applicable taxes have been determined at the time that this status is approved. The determined duty rate and taxes are not subject to future fluctuation. Once established, privileged foreign status cannot be changed. If merchandise has already been admitted to a zone with a non-privileged foreign status, privileged foreign status may be obtained by filing a CF214 and related documents. Application for this status, however, must be filed prior to manipulation or manufacture in the zone.
Merchandise, the importation of which is prohibited by law on grounds of public policy or morals, or any merchandise which is excluded from a zone by order of the Foreign-Trade Zones Board. Books urging treason or insurrection against the U.S., obscene pictures. Also, certain operations involving the following merchandise are prohibited in zones: Tobacco, cigars, cigarettes and cigarette papers and tubes, firearms, distilled spirits, alcohol, wine and beer, sugar, watch movements and retail sales in a zone.
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 has restricted certain operations involving the following products: steel, textiles, television tubes, sugar. The restrictions may vary on a case-by-case basis.
A special purpose zone established as part of a zone project for a limited purpose, which cannot be accommodated within an existing zone facility. The term "zone" also applies to a subzone, unless otherwise specified.
To take merchandise with zone status from a zone for consumption, transportation, exportation, warehousing, cartage, or lighterage, vessel supplies and equipment, admission to another zone and like purposes.
Unique Identifier Number
A number or identifier assigned to a specific type of material or merchandise admitted to the zone. FTZ Inventory is tracked by accumulating the admission and shipment quantities associated with this unique number over a range of shipments rather than by maintaining quantities of a variety of materials within a specific shipment. Inventory levels are adjusted on a First-In, First-Out (FIFO) or Foreign-First (FOFI) basis pursuant to generally accepted accounting principles. Merchandise associated with different admission shipments need not be physically segregated from other admissions. .
A person or firm using a zone for storage, handling or processing of merchandise.
Zone Lot Number
A collection of merchandise maintained under an inventory control method based on specific identification of merchandise admitted to a zone by lot and lot number. Use of this method requires use of uniquely and sequentially numbered lot files and the physical segregation and marking of lots.
Zone Restricted Status
Merchandise admitted to the 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.
The physical location of a zone or subzone.
The status of merchandise admitted to a Foreign-Trade Zone.
The Zone year is the fiscal year by which the Operator or User basis its inventory control reporting.