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FOREIGN-TRADE
ZONE DEFINITIONS
Admit
To bring merchandise into a zone with zone status.
Audit-Inspection
Procedures
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.
Constructive
Transfer
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.
Default
An action or omission that will result in a claim for duties,
taxes, charges, or liquidated damages under the FTZ Operator’s
bond.
Domestic
Merchandise
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.
Domestic
Status
Merchandise produced in the United States; and imported merchandise
properly released from Customs custody on which all applicable
duties and taxes have been paid.
Dutiable
Value
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.
Foreign
Merchandise
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.
Fungible
Merchandise
Merchandise which for commercial purposes is identical and interchangeable
in all situations.
Grantee
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
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.
Operator
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.
Prohibited
Merchandise/Operations
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.
Restricted
Merchandise/Operations
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.
Subzone
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.
Transfer
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.
.
User
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.
Zone
Site
The
physical location of a zone or subzone.
Zone
Status
The
status of merchandise admitted to a Foreign-Trade Zone.
Zone
Year
The
Zone year is the fiscal year by which the Operator or User basis
its inventory control reporting.
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