Foreign Trade Zones and Subzones

Foreign-trade zones (FTZs) are secure areas located in or near CBP's ports of entry, but legally considered to be outside the Customs territory for the purpose of tariff laws and Customs entry procedures. There are two types of foreign-trade zones: General Purpose Zones and Subzones. There is no legal difference in the types of activity that may be undertaken in General Purpose Zones or subzones. To become a zone user, a company must file an application to the Foreign-Trade Zones Board, who review and approve applications to establish, operate, and maintain foreign-trade zones. Applications for a zone grant are involved and have a lengthy approval process, perhaps a year or more. Zones are not operational immediately when the Foreign-Trade Zones Board issues the grant of approval. Before operations can take place, the zone operator (or grantee/operator) must submit a written application to the Customs Port Director to obtain approval of activation of a zone. The entire area receiving the zone status does not have to be activated at the same time. Portions may be carved out to meet the user's needs.

At Szaferman Lakind's full service law firm, we provide a wide range of services in regards to FTZs, from setting up and activating an FTZ or subzone and the education of companies as to FTZ benefits, to meeting entry, record keeping, and other requirements from US Customs and Border Protection.

Our experience has included obtaining General Purpose Zone designation status for the first fully developed, tenanted, vintage-building, industrial park in the United States.

Attorneys

Ryan A. Marrone

Szaferman, Lakind, Blumstein, & Blader, P.C.
Committed to Excellence