In October 2014, Integration Point hosted a webcast on the topic of US Foreign-Trade Zones (FTZs) and NAFTA exporting.  The presenter, Rebecca Williams, Managing Director for the Rockefeller Group’s Foreign Trade Zone Services, spent the hour going through how companies using zones could also benefit from NAFTA qualifications when exporting.  During the webcast there were several questions that were not able to be covered due to time constraints.   Part 1 of the questions dealt with NAFTA benefits and eligibility – that post can be viewed here.  Today’s post answers the questions for those that are new to FTZs and NAFTA.  You can also view an on-demand version of the webcast here.

 

Q1. Where can a small company that plans to use FTZ-NAFTA go for help?

  • CBP FTZ & NAFTA Duty Deferral Regulations (19 CFR 146 and 19 CFR 181.53)
  • CBP FTZ Manual http://www.cbp.gov/sites/default/files/documents/FTZmanual2011.pdf)
  • CBP NAFTA Duty Deferral Instructions (CSMS #96-000078)(Administrative Message #00-1176)
  • Seek advice from FTZ consultant or attorney as NAFTA eligibility, NAFTA duty deferral and FTZ implementation combined is a complex topic

 

Q2.  I’m new to NAFTA and wanted to know – how do you know that you are in a FTZ?

A2. FTZs must first be designated by the U.S. Foreign-Trade Zones Board and then “activated” with the local CBP port of entry. You can obtain information about FTZs in your state and the physical boundaries of those FTZ sites on the U.S. Foreign-Trade Zones Board’s website (http://enforcement.trade.gov/ftzpage/).  If you are located in an existing FTZ site but are not activated with CBP, wherein you become a bonded facility maintaining an FTZ operator’s bond for the purpose of receiving, handling and shipping non-duty paid merchandise, then the NAFTA Duty Deferral related to FTZs do not apply. These regulations only apply to companies that are activated and receiving/producing goods in zone status/non-duty paid.

 

Integration Point also has great resources available for those that are new to FTZs.  These resources can be found on the website under FTZ Resources.

 

You can view the full webcast and hear all the Questions & Answers on-demand here.