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.   Part 2 provided information for those that are new to FTZs and NAFTA, and can be viewed here.  Today’s post answers general questions about FTZs and NAFTA.  You can also view an on-demand version of the webcast here.


Q1. Can you speak briefly about the process (disclosure) and steps if NAFTA duty deferral was supposed to be claimed but was not at the time of export?

A1. The U.S. Customs & Border Protection (CBP) regulations at 19 CFR §162.74 outline the regulatory requirements associated with filing prior disclosures.  Additionally, Treasury Decision 01-41 addresses CBP mitigation guidelines pertaining to claims arising from foreign-trade zone violations.  If you believe you may be in violation of the NAFTA Duty Deferral regulations, please identify the potential violation internally with your Trade Compliance and Legal departments and seek assistance from an FTZ consultant or attorney to determine the proper course of action.


Q2.  Is export reporting required for goods withdrawn from a zone on a consumption entry and then subsequently exported, or only for In-Bond exports from zones?

A2. Export reporting as required by the Census Bureau Foreign Trade Regulations (FTR) is required regardless of whether FTZ produced goods are Customs entered and then exported or exported in-bond from the zone.


Q3. Is a 3461/Customs release required for an 08 NAFTA duty deferral entry?

A3. No.


Q4. Are AD/CVD duties subject to the NAFTA drawback/duty deferral provisions and therefore eligible for reduction or waiver through export from an FTZ?

A4. No. Full AD/CVD duties will be due under NAFTA Duty Deferral procedures and cannot be waived or reduced.


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