From: Dennis Puccinelli
Acting Executive Secretary

Subjects: Annual Report; Commerce Export Assistance Centers; Census Reporting; Production Equipment; New List of Zones; Lapsed Subzones

Annual Reports

Enclosed is a copy of the recently published FTZ Board FY 1998 annual report. We want to express our appreciation for your cooperation and efforts in preparing your annual reports to the Board. Last year, most zones submitted reports on time and responded quickly to our follow up questions. This was very important in helping us review and process over 300 reports and compile our statistics for our report to Congress in a timely manner. For FY 1999, we have received the great majority of annual reports from grantees, and we again express our appreciation for your responsiveness. For grantees who have not yet met this requirement, we must ask that you focus on this project immediately. (Zones who do not report in a timely manner are not in compliance with the FTZ Act.) For those of you needing a copy of the current annual report format, a copy is available on the FTZ Web site (Note the new shortcut to our web site.) I ask grantees to ensure that all communications from the FTZ Board are passed on to all of the zone and subzone operators under their zone projects.

Export Assistance Centers

The U.S. Department of Commerce operates Export Assistance Centers throughout the country which provide businesses a comprehensive array of export counseling and trade finance services. Some centers also have Small Business Administration and Ex-Im Bank counselors and the remainder can provide links to such services. For further information, please see my attached memo and list of Export Assistance Centers. I urge zone grantees, operators and users to form a relationship with your nearest center. For any questions or assistance, you may also contact the Department’s Trade Information Center at 800-USA-TRADE, or visit their web site.

Census Reporting

We are working with the Census Bureau in a cooperative effort to ensure that import and export statistical data is being properly reported, and to encourage electronic reporting whenever possible. This is part of a larger Census Bureau initiative to improve the trade statistics reporting system throughout the trade community. We are asking each zone and its users to review their respective reporting systems for merchandise admitted to zones and merchandise exported. As you are aware, statistical data on merchandise admitted to zones must be reported on the CF-214a, and all merchandise exported must be reported on the Shippers Export Declaration (SED). I want to draw particular attention to the Census Bureau’s electronic reporting formats. I believe that electronic reporting will not only improve the accuracy of our trade data but also improve reporting efficiency for zone users. For example, Customs and Census have developed an internet-based SED reporting system as part of the Automated Export System. We and Census are planning to send you additional information on this matter. If you have any questions call Gloria Thomas at Census (301-457-2220).

Production Equipment

An amendment to the FTZ Act permits zone users to admit production equipment and components for an authorized zone activity. Formal entry may be deferred while the equipment is being assembled and prepared for production activity. Duty is due when the equipment goes into use for production activity. Please see my enclosed memo on this matter.

List of Zones

The list of FTZs and contact persons on the FTZ Board’s web site is now integrated with the National Export Directory. This provides an opportunity for zones to provide more information on their projects to the public, primarily through a link to their web sites. My attached memo provides information on how to establish and maintain the references to your zone. We will continue to maintain our zone list, which appears in the annual report and ask that you also inform us of any changes.

Lapsed or Expired Subzones

We are in the process of revising our list of subzones to remove from our list those subzones whose authority has expired, lapsed or been terminated by FTZ Board action. In addition, certain subzone numbers have been changed due to transfers or consolidations. It appears that over 50 subzones may be removed from the list. We note that the lapse provision of the FTZ Board regulations (15 CFR Sec. 400.28(a)(5)) provides that the authority for a zone or subzone will lapse if it is not activated within five years of approval, with an additional 18-month period provided for reinstatement. Please review the attached list of subzones which we are planning to permanently remove from our list, and let us know if there are any inaccuracies. The list is in alphabetical order by company.