Frequently Used FTZ Terminology
Approval by the Customs Port Director and the Grantee for the zone to begin receiving merchandise in zone status.
The initial process of filing data releated to an import with U.S. Customs. A Cargo Release is the actual approval by U.S. Customs for the goods to enter the commerce of the United States.
Imported merchandise which has not been entered into the Customs territory of the U.S. It may have privileged, non- privileged or zone restricted status.
A corporation or company that operates a zone or subzone under the terms of an agreement with the Grantee.
Jurisdiction within which a Grantee proposes to be able to designate sites via Minor Boundary Modification (MBM) under the ASF.
A number or identifier assigned to a specific type of material or merchandise admitted to the zone.
The physical location of a zone or subzone.
Process of bringing merchandise into the activated zone area with zone status.
The value of merchandise imported into the U.S. upon which duty is owed.
An organization to which the privilege of establishing, operating and maintaining a Foreign Trade Zone has been granted by the FTZ Board.
The Customs person in charge of a Port of Entry area.
A special purpose zone established as part of a zone project for a limited purpose which cannot be accommodated within an existing zone facility.
A company, firm or person using a zone for storage, handling or processing of merchandise.
The status of merchandise admitted to a FTZ. The four types of Zone Status are:
a. Privileged Foreign (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.
b. Non-Privileged Foreign (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 U.S. from the zone for consumption.
c. Domestic – Merchandise which has been produced in the U.S. and not exported; or merchandise imported into the U.S. and duty paid at the time of entry.
d. Zone Restricted (ZR) – 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 FTZ Board.
An optional approach to designation and management of zone sites with FTZ activities to fixed sites with additional flexibility to serve companies at other locations where demand for services arise.
The Customs process that allows merchandise to be brought into the commerce of the U.S.
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.
Activity involving the substantial transformation of a foreign article resulting in a new and different article having a different name, character, and use or activity involving a change in the condition of the Customs classification of the article or its eligibility for entry for consumption.
Designed to serve zones that are focused on attracting FTZ activities to fixed sites.
A Grantee publication that contains rates and charges and all internal rules and regulations that apply to their identified Foreign-Trade Zone.
Frequently Used Customs Forms
Document which authorizes the admission of merchandise into a zone and designates the status of the merchandise.
Document which must be approved by Customs and furnished to the Operator prior to the physical removal of any merchandise from the zone for exportation of merchandise from the U.S.
Document which authorizes the User to engage in certain activities with the zone such as manipulation, storage, destruction, etc.
The final declaration of goods, and values as approved by a corresponding Cargo Release, on which final duty payment is made.