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Responsibilities
of the Zone Grantee
The Grantee of a Foreign-Trade Zone project has a number of important
responsibilities. A number of these are set forth in the Foreign-Trade
Zones Act, the Foreign-Trade Zones Board regulations, and the
Customs regulations. Other responsibilities are a natural consequence
of being involved in the Zones program as a Grantee organization.
The Grantee files all applications with the Foreign-Trade Zones
Board. In addition to the original application that results in
the establishment of the Zone project, the Grantee files all applications
to expand the Zone and establish Subzones. The Grantee also files
requests – such as minor boundary modifications – that
are handled as administrative actions by the Foreign-Trade Zones
Board.
In the original Zone application, and in any subsequent expansions
or minor boundary modifications, the Grantee is responsible for
site selection. This means that the Grantee must confirm that
it has the right of use of each site and that each site meets
any land use requirements for Zone activities. For sites owned
by the Grantee and for sites not owned by the Grantee, the Grantee
is ultimately responsible for the maintenance of Zone facilities.
This makes operator and user agreements particularly important
as instruments that pass on these kinds of responsibilities.
The Grantee is responsible for seeing that the entire Zone project,
including use of the General Purpose Zone and Subzones, is operated
under public utility principles. The operating policies, rules
and regulations, and fee structure must be set forth in the Grantee’s
Zone Schedule, which is available to the public. (A copy of the
Zone Schedule must also be filed with the Foreign-Trade Zones
Board.)
The Grantee is responsible for its written concurrence when any
General Purpose Zone or Subzone area is activated, deactivated,
or altered. The Grantee must also issue any permits authorizing
retail sales or other commercial activity involving domestic,
duty-paid and duty-free goods within activated zone project. (Requests
for such permits must also be forwarded for concurrence to the
Foreign-Trade Zones Board and the Port Director of Customs.)
The Grantee is responsible for compiling information and filing
all annual reports to the Foreign-Trade Zones Board.
The
Grantee is also responsible for maintaining a number of documents
concerning the Zone project. These include:
- Grant
of Authority
- Board
Orders
- Applications/requests
submitted to the FTZ Board, including Subzone applications,
boundary modification requests, manufacturing/processing requests
and scope requests
- Current
layout drawings of approved sites showing activated portions
- Grantee/Operator
agreements
Although
the Grantee is not directly responsible for inventory control
and recordkeeping (this responsibility rests directly with each
Zone or Subzone operator), the Grantee is considered by Customs
to be ultimately liable for any outstanding Customs fines, penalties
and/or liquidated damages should the Zone or Subzone operator
be unable to pay them. Therefore, it behooves the Grantee to see
that each Zone or Subzone operator utilizes inventory control
and recordkeeping systems that are compliant with Customs requirements.
The Grantee is also responsible for marketing the Zone. Depending
on the goals and objectives of the Zone project, the Grantee may
find itself marketing access to the Zones program, storage and
cargo handling services, or land or building space. Ideally, the
services or amenities offered by a Grantee will serve to enhance
the international competitiveness of firms that use its Zone project.
For further reference regarding Grantee responsibilities, see
the following sources:
Foreign-Trade Zones Act
19
U.S.C. 81l
19
U.S.C. 81 n
19
U.S.C. 81p(b)
Foreign-Trade Zones Board regulations
15 C.F.R. 400.42
15 C.F.R.400.42(b)
15 C.F.R. 400.45(a)
15 C.F.R.400.46(b)
15 C.F.R. 400.46(c)
15 C.F.R. 400.46(d)
Customs regulations
19 C.F.R. 146.6
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