Foreign Trade Division

What is a Foreign Trade Zone and 

Can It Help You?

October 17, 2012
#foreigntrade

Today’s Speakers

Host: Jennifer Smits 

Public Affairs and Media Events Public Information Office 

Presenter: Wendy Peebles 

Chief, Data Collection Coordination Foreign Trade Division 

The U.S. Census Bureau measures the natio

People, Places, and our Economy

www.census.gov
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Fundamentals of Export

Created by the Foreign Trade Division of th

Census Bureau, this in-depth webinar se

provides the tools necessary for a stro

foundation in the fundamentals of expor

What is a Foreign Trade Zone and How C

Help You?

The last webinar in the 8-part series 

http://www.census.gov/newsroom/releases/archives/news_conferences/webinars_e
Foreign Trade Division

The Foreign Trade Division is 

official source for U.S. export a

import statistics and is responsib

issuing regulations governing t

reporting of all export shipments 

the United States. 

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Today’s Topics

• What is a Foreign Trade Zone?• Types of Foreign Trade Zones• FTZ Filing Requirements • FTZ Benefits • Best Practices • Resources 

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What is a Foreign Trade Zo

• A restricted access site, in or adjacent to 

Customs port of entry, but legally defined outside the Customs Territory of the UnitStates.

• Operated by the public or private corpora

as authorized by the Foreign Trade Zone and under supervision of U.S. Customs aBorder Protection. 

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What is a Foreign Trade Zo

• Foreign and Domestic Merchandise may 

admitted into zones

• Merchandise within a zone may be used 

storage, assembly for exhibits, manufactprocessing. 

• Merchandise may be stored into a zone f

unlimited amount of time.

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Aerial View of a FTZ

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Types of FTZ’s

General Purpose Zone

Established for multiple activities Established for multiple users Most commonly located at ports or Industrial parks Used by small to medium sized businesses for warehousing, distribution, processing or assembly 

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Examples: Electronics, Machine Parts Retail items 
Types of FTZ’s

Subzones sponsored by General SubzoPurpose Zones Typically involve a single company Used for more extensive manufacturing/processing that cannot be accomplished in a General purpose zone Example: An Automobile Plant 

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Statistical Filing Requirem

• Foreign Trade Zone Admissions 

 CBP paper equivalent forms 214 and 214 CBP Electronic 214 Program (E-214) 

• Foreign Trade Zones admissions refers to th

physical arrival of goods into a zone 

 The correct term to use is admission vs.  Avoids confusion under parts 141-144 C

Code of Federal Regulations 

• Mandatory Filing of E-214 in the works 

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Statistical Filing Requirem

• Merchandise withdrawn from a FTZ and ente

U.S. Consumption must be filed: 

 Automated Broker Interface (ABI) or  CBP Paper Form 7501 

• Tracks flow of goods into the U.S. 

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Statistical Filing Requirem

• FTZ Exports refers to merchandise exiting t

for shipments to other countries and Puerto and Virgin Islands 

• Foreign Trade Zone Exports 

 Automated Export System (AES)  AESDirect (Free Internet Application) 

• Electronic mediums ensure quality and 

timely reporting to the Census Bureau monthly published trade statistics

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Advantages of FTZ’s 

• Foreign and domestic merchandise may 

admitted

• Merchandise can be stored, assembled, 

manufactured and processed

• Helps create employment opportunities • Not subject to duties and tariffs, unless a

the foreign merchandise enters Customs for U.S. consumption 

• Helps facilitate and expedite internationa
FTZ Benefits for 

Electronic Filing (E-214)

• Provides paperless transmissio• Provides edits and validates da• Provides cost efficiencies 

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What is an Inbond Code

An inbond code is a two digit numidentifying the inbond movement omerchandise. It does not include spaces, hyphens, slashes or other special characters 

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Inbond Types

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Inbond Type Claims 

If the inbond type 67 or 68 is selected tIdentifier MUST be reported. 

 Type 67 = Foreign Trade Zone with

for IE (Immediate Exportation) 

 Type 68 = Foreign Trade Zone with

for T&E (Transportation & Exportat

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FTZ Identifier Field

Each Foreign Trade Zone (FTZ) has its own peridentification number or FTZ I.D. The key aspecmakeup are:  It’s 5 digits long  The first 3 digits are the numeric (zone identif The last 2 alpha numeric (subzone identifier) 

Example:

 Zone 167, without a sub zone = FTZ 16

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 Zone 20, with a sub zone H = FTZ 0200
Completing the EEI in AESD

When filling out the Electronic Export Information (EEI), the appFTZ identifier code should be entered. It is conditional field, but can become a required If certain inbonare selected. 

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Field in AESDirect 
Common Reporting Erro

• Reporting a non FTZ identifier 

 State code or Names of Cities  Zip code or Port Code  Dollar value  Country Code  UNKN 

• Reporting an inbond code without 

the correct FTZ identifier

• Reporting an incorrectly formatted 

FTZ identifier

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 000165B0  65 H00 
Implement Best Practice

• Document the processes – create Standard Operating 

Procedures or Manuals that are clear and concise 

• Participate in refresher training sessions, conferences

webinars at least twice a year. Conduct cross training the staff 

• Establish clear communications with Staff, Customs O

Freight Forwarders, Other Government Agencies and Associations 

• Results in reducing and eliminating risks and increase 

compliance 

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Implement Best Practice

• Retain records for at least 5 years • Ready access to files • Be prepared to respond to request from government 

ie., U.S. Customs and Border Protection and U.S. CeBureau 

• Notify participating government agencies of staff cha

contact information is updated 

• Keep freight forwarders informed and provide accura

information 

• Ensure filing accuracy 
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References

• AESDirect - http://www.aesdirect.gov/ 

- Support Center - AESDirect / AESPcLink Userguides 

• NAFTZ – http://naftz.org/ 

- Spring/Fall NAFTZ Conferences - Annual Regulatory Meeting - Webinars 

• Customs and Border Protection– www.cbp.g

- Regulatory Requirements 

• Foreign Trade Zone Video 

http://www.youtube.com/watch?v=mIYoM
2012 FTD Customer Service S

Available until October 31, 2012

Use this link: http://questionweb.com/82758
Additional Training Too

 Export training videos 

http://www.census.gov/foreign-trade/aes/exporttraining/videos/in

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 Global Reach Blog 

http://globalreach.blogs.census.gov 
America’s Economy Mobile 

• www.census.gov/mobile• 16 Key Economic 

Indicators, including International Trade 

• Available for iPhone, 

iPad and Android devices 

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For More Information

 Media Inquiries: 

 Public Information Office: 301-763-3030 

 For Foreign Trade Zone Questions, call 

Data Collection Coordination Branch: 301-763-225

 FTD Call Center: 800-549-0595 

 Option 1 – AES Assistance  Option 2 – Commodity Classification Assistance  Option 3 – Regulations Assistance  Option 4 – Data Dissemination Branch 

 Fax: 301-763-8835 

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Questions?

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