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C16u—U.S. Foreign Trade Zone (FTZ) Overview

Subscriber price: $65.00, Non-subscriber price: $85.00
Estimated total study time: 4 hours 51 minutes

This course is an overview of what Foreign Trade Zones are, how they began and why they are used. The material provides a basic understanding of the documents required, operations that can be performed, the status options for admittance and the benefits of using a Foreign Trade Zone, including a comparison of FTZ's against other duty deferral programs. This course is for anyone needing a basic understanding of the Foreign Trade Zone process.

Introduction to U.S. Foreign Trade Zones

This first lesson, Introduction to U.S. Foreign Trade Zones, begins with an introduction into what foreign trade zones are, why, and how they began.

Next we review the two types of foreign trade zones and how CBP fits into the process. Finally, we discuss the kind of merchandise that can be placed in the FTZ and what operations can be performed there.

(Estimated study time: 1 hour 3 minutes)

• Introduction
• Introduction to U.S. Foreign Trade Zones (FTZ)
• What Is an FTZ?
• Foreign Trade Zone Board's Role in the Foreign Trade Zone (FTZ) Process
• CBP's Role in the Foreign Trade Zone (FTZ) Process
• Types of Foreign Trade Zones
• Kind of Merchandise that Can Be Placed in a Foreign Trade Zone (FTZ)
• Typical Operations that Can Be Performed in a Foreign Trade Zone (FTZ)

Foreign Trade Zone Inventory and Recordkeeping Overview

In this lesson, we begin our study with an overview of foreign trade zones with an introductory coverage of documentation required for inventory and recordkeeping including information required for admission, manufacture and removal from the FTZ.

(Estimated study time: 1 hour 18 minutes)

• Introduction
• Foreign Trade Zone Inventory and Recordkeeping - In General
• Documentation for Entry into the Foreign Trade Zone (FTZ)
• Consignment to Foreign Trade Zone (FTZ)
• Documentation for Manufacture in the Foreign Trade Zone (FTZ)
• Documentation for Removal or Transfer from the Foreign Trade Zone (FTZ)
• Goods to be Cleared from a Foreign Trade Zone

Status Conditions of Merchandise in a Foreign Trade Zone

This lesson touches on tariff classification and value based on foreign trade zone status, and what the consequences are for non-compliance. Here we also cover the types of status conditions under which the goods are admitted to achieve the greatest benefit.

(Estimated study time: 1 hour 7 minutes)

• Introduction
• Status Conditions of Merchandise in a Foreign Trade Zone (FTZ)
  • Entry into the Foreign Trade Zone (FTZ) in Privileged Foreign Status
  • Entry into the Foreign Trade Zone (FTZ) in Non-privileged Foreign Status
  • Entry into the Foreign Trade Zone (FTZ) in Domestic Status
  • Entry into the Foreign Trade Zone (FTZ) in Zone-restricted Status
  • Foreign Trade Zone (FTZ) Merchandise Referred to as Mixed Status
  • Equipment used in a Foreign Trade Zone (FTZ)
• Valuation in the Foreign Trade Zone (FTZ)
• Penalties for Non-Compliance with Foreign Trade Zone Regulations

Benefits of Using a Foreign Trade Zone

This lesson is about the benefits of using a foreign trade zone, and there are quite a few! The primary benefit is that duty can be deferred until the goods are removed from the FTZ. There are several others and we will briefly discuss each of them.

(Estimated study time: 34 minutes)

• Introduction
• Benefits of Using a Foreign Trade Zone (FTZ)
  • Duty and Tax Deferral until Closer to the Point of Sale
  • Reduction/Elimination of Duties, Taxes and Fees through Product Manipulation, Manufacture, or Re-exportation
  • Enhanced Security, Compliance, Control and Risk Management of International Business Issues and Regulatory Environments
  • No Time Constraints on Storage
  • Exportation Requirements Satisfied
  • FTZ's in Strategic Locations or Nearby
  • Non-dutiable Labor, Overhead, Profit, Consumed Products
  • Ability to Exploit New Business Opportunities

Comparison of Foreign Trade Zones to Other Duty Deferral Programs

In this lesson we will compare use of an FTZ with use of a customs bonded warehouse, duty drawback and temporary import bond.

(Estimated study time: 36 minutes)

• Introduction
• Use of the Foreign Trade Zone (FTZ) Compared to Some Other Duty-Deferral Programs
  • FTZ vs. Other Duty-Deferral Programs - In General
  • FTZ vs. Duty Drawback
  • FTZ vs. Temporary Importation Bond
• FTZ vs. Customs Bonded Warehouse
• Limitations of Using a Foreign Trade Zone