Subpart A--General Provisions

Sec. 146.1  Definitions.

    (a) The following words, defined in section 1 of the Foreign-Trade 
Zones Act of 1934, as amended (19 U.S.C. 81a), are given the same 
meaning when used in this part, unless otherwise stated: ``Board'', 
``Grantee'', and ``Zones''.
    (b) The following are general definitions for the purpose of this 
part:
    (1) Act. ``Act'' means the Foreign-Trade Zones Act of June 18, 1934, 
as amended (48 Stat. 998-1003; 19 U.S.C. 81a-u).
    (2) Activation. ``Activation'' means approval by the grantee and 
port director for operations and for the admission and handling of 
merchandise in zone status.
    (3) Admit. ``Admit'' means to bring merchandise into a zone with 
zone status.
    (4) Alteration. ``Alteration'' means a change in the boundaries of 
an activated zone or subzone; activation of a separate site of an 
already-activated zone or subzone with the same operator at the same 
port; or the relocation of an already-activated site with the same 
operator.
    (5) Customs territory. ``Customs territory'' is the territory of the 
U.S. in which the general tariff laws of the U.S. apply. ``Customs 
territory of the United States'' includes only the States, the District 
of Columbia, and Puerto Rico. (General Note 2, Harmonized Tariff 
Schedule of the United States (19 U.S.C. 1202)).
    (6) Constructive transfer. ``Constructive transfer'' is a legal 
fiction which permits acceptance of a Customs entry for merchandise in a 
zone before its physical transfer to the Customs territory.
    (7) Deactivation. ``Deactivation'' means voluntary discontinuation 
of the activation of an entire zone or subzone by the grantee or 
operator. Discontinuance of the activated status of only a part of a 
zone site is an alteration.
    (8) Default. ``Default'' means an action or omission that will 
result in a claim for duties, taxes, charges, or liquidated damages 
under the Foreign Trade Zone Operator Bond.
    (9) Merchandise. ``Merchandise'' includes goods, wares and chattels 
of every description, except prohibited merchandise. Building materials, 
production equipment, and supplies for use in operation of a zone are 
not ``merchandise'' for the purpose of this part.
    (10) Domestic merchandise. ``Domestic merchandise'' is merchandise 
which has been (i) produced in the U.S. and not exported therefrom, or 
(ii) previously imported into Customs territory and properly released 
from Customs custody.
    (11) Foreign merchandise. ``Foreign merchandise'' is imported 
merchandise which has not been properly released from Customs custody in 
Customs territory.

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    (12) Conditionally admissible merchandise. ``Conditionally 
admissible merchandise'' is merchandise which may be imported into the 
U.S. under certain conditions. Merchandise which is subject to permits 
or licenses, or which may be reconditioned to bring it into compliance 
with the laws administered by various Federal agencies, is an example of 
conditionally admissible merchandise.
    (13) Prohibited merchandise. ``Prohibited merchandise'' is 
merchandise the importation of which is prohibited by law on grounds of 
public policy or morals, or any merchandise which is excluded from a 
zone by order of the Board. Books urging treason or insurrection against 
the U.S., obscene pictures, and lottery tickets are examples of 
prohibited merchandise.
    (14) Fungible merchandise. ``Fungible merchandise'' means 
merchandise which for commercial purposes is identical and 
interchangeable in all situations.
    (15) Operator. ``Operator'' is a corporation, partnership, or person 
that operates a zone or subzone under the terms of an agreement with the 
zone grantee. Where used in this part, the term ``operator'' also 
applies to a ``grantee'' that operates its own zone.
    (16) Reactivation. ``Reactivation'' means a resumption of the 
activated status of an entire area that was previously deactivated 
without any change in the operator or the area boundaries. If the 
boundaries are different, the action is an alteration. If the operator 
is different, it is an activation.
    (17) Subzone. ``Subzone'' is a special-purpose zone established as 
part of a zone project for a limited purpose, that cannot be 
accommodated within an existing zone. The term ``zone'' also applies to 
a subzone, unless specified otherwise.
    (18) Transfer. ``Transfer'' means to take merchandise with zone 
status from a zone for consumption, transportation, exportation, 
warehousing, cartage or lighterage, vessel supplies and equipment, 
admission to another zone, and like purposes.
    (19) Unique identifier. ``Unique identifier'' means the numbers, 
letters, or combination of numbers and letters that identify merchandise 
admitted to a zone with zone status.
    (20) User. ``User'' means a person or firm using a zone or subzone 
for storage, handling, or processing of merchandise.
    (21) Zone lot. ``Zone lot'' means a collection of merchandise 
maintained under an inventory control method based on specific 
identification of merchandise admitted to a zone by lot.
    (22) Zone site. ``Zone site'' means the physical location of a zone 
or subzone.
    (23) Zone status. ``Zone status'' means the status of merchandise 
admitted to a zone, i.e., nonprivileged foreign, privileged foreign, 
zone restricted, or domestic.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 89-1, 53 FR 
51263, Dec. 21, 1988]