• Zone reports should reflect only activity within activated portions of zones/subzones. Foreign and domestic merchandise handled within activated FTZ areas should be reported. (Some domestic merchandise may be excluded if it is not related to zone activity in any way.)
• The figures for the “Movement of Merchandise” table are an accounting of the material inputs. They may be derived from existing company data. Foreign status merchandise figures may be derived from existing zone inventory control system data (sum of foreign status reported to CBP). Domestic status figures may be derived from total merchandise receipts (by the activated operation) minus the foreign status figure.
• The first figure in the "Movement of Merchandise" table (under the "Received," "Domestic Origin/Duty Paid" heading) involves the value of merchandise admitted to zones from U.S. Customs territory. It should include U.S.-origin merchandise and foreign merchandise for which formal Customs entry for consumption has been made, including domestic-origin zone restricted merchandise.
• The second figure under this table heading ("Received," "Foreign Status") involves the value of merchandise admitted to the zone in both foreign privileged and non-privileged status as well as foreign-origin merchandise admitted in zone restricted status.
• The figures under the “Forwarded” heading should be based on the value of foreign status and domestic status merchandise (material inputs) admitted to the zone and then removed from the zone inventory for shipment to the U.S. market or to foreign markets. It should not include value-added in the zone (labor, profit, overhead). The value of merchandise forwarded should equal the value of merchandise received plus or minus the change in inventory, OR: Beginning Inventory + Total Merchandise Received - Total Merchandise Forwarded = Ending Inventory. (There may be discrepancies due to scrap or other adjustments and these can be noted without values below the table.)
• “Forwarded, To the U.S. Market” includes that portion of the value “Forwarded” described above that is destined for sale in the U.S. market. Operators may allocate/estimate shipment value between foreign and domestic destinations based on ratios derived from general company data.
• “Forwarded, To Foreign Countries” (i.e., exports) is that portion of the forwarded value that is destined for foreign markets. In addition to the value of merchandise shipped abroad directly from the zone, this category should also include the value of merchandise shipped from a zone which is transferred/entered into Customs territory prior to export from the United States. The operator may estimate such shipments.
• Estimates of value-added for zone manufacturing activity should be provided separately under the “Value-Added” heading. This includes labor, profit and overhead and other value added to material inputs at the plant. One way to estimate plant value-added is: Value of Sales from Plant (or ex-factory value of shipments) minus the Value of Merchandise Received at the Plant. Value added is not included in the Movement of Merchandise figures.
• In the “Movement of Merchandise” tables (zone and subzone), note that the value of zone-to-zone transfers are reported under a separate line item.
• In the “Movement of Merchandise” tables, the difference between incoming and outgoing figures should be checked against the figures given for the beginning and ending inventory levels, and unusual discrepancies should be explained.
• With regard to the list of “Foreign Status Items Received” (Part III, Sec. D and Part V, Sec. B.4), you may indicate categories of products and provide rounded value figures so that the information is in a non-proprietary form. For the “main countries of origin,” please list one or more countries that are considered major sources for each category.
• Employment figures should include both direct and contract persons working within the activated area that had zone operations during the year. For part time workers, please report a full time equivalent (e.g., 60 contract employees working for 6 months would equal a full time equivalent of 30 workers).
• In general, all data must be in a non-proprietary form. If you have information in addition to that which is required which would be useful to the FTZ Board but is business proprietary, you must mark it BUSINESS PROPRIETARY and submit it separately in a marked envelope.
• In reporting the amount of Customs duties collected, you may use an estimate that is agreed upon by Customs officials.

FTZ Staff
February 2006