October 15, 2003
Memorandum for Foreign-Trade Zone Grantees
| From: | Dennis Puccinelli |
| | Executive Secretary |
| Subjects: | 1. FTZ ANNUAL REPORT - FY 2003 |
| | 2. NEW ADDRESS |
| | 3. SECURITY |
| | 4. EXPORT FIGURES; REPORTING MATTERS; CENSUS; WEB PAGE |
1. ANNUAL REPORT - FY 2003
I am writing to remind you about the annual report that is due to the FTZ Board from each zone
grantee. The deadline for the FY 2003 report is the usual end-of-January date (1/31/2004). The
report format is available on the FTZ Board Web site along with application guidelines and other
information on FTZ matters under the "Guidelines" menu item. The FTZ web address is:
http://ia.ita.doc.gov/ftzpage
If you wish to obtain a copy of the annual report format from our Web site, we suggest you
download the new Word version. (It was written in Times New Roman font - 12 point). We ask
that each grantee pass the report format on to each of its subzones and operators. We also ask
that you provide subzones and operators sufficient time (i.e., 60 days) to provide complete and accurate
information. If you need a paper copy of the format, please call Ms. Yvette Morgan of the FTZ
Staff at (202) 482-2862, or e-mail her at Yvette_Morgan@ita.doc.gov.
For oil refinery subzones, there is an oil refinery annual report format/guideline, which
replaces the standard Part V of the annual report format. The guideline is designed to assist
oil refinery subzone operators in preparing the report and to improve the overall quality of the
information received. It was developed in consultation with representatives of oil refinery subzones. The oil
refinery annual report format/guideline is available on our web page under the “Oil Refinery
Subzone Information Page” menu item.
Several years ago, we moved the due date from the year-end holiday period to January 31 to give
grantees more time, and we will consider requests for time extensions (usually 30-60 days) based on special
circumstances. Such requests can be made by fax (202 482-0002) or e-mail (Dennis_Puccinelli@ita.doc.gov or Claudia_Hausler@ita.doc.gov).
I appreciate the effort most grantees have been making to submit their reports on time and to
respond to our follow up questions. We ask for your continued attention to this requirement so that we
can meet our goals for timely review, publication and distribution of our report to Congress and
to zone grantees. Further, compliance in this area is needed if we are to respond to your
applications and requests in a timely manner.
2. NEW ADDRESS - Reminder
This is a reminder that the office of the Foreign Trade Zones staff moved in 2001 from the main
Commerce Building to the Franklin Court Building - Suite 4100W. Please note that we have two
addresses depending on the method of delivery. One address is for letters and packages sent by
package delivery companies and the other address is for letters and packages sent through the
U.S. Postal Service. (Note the different zip codes.) U.S. mail will be sent to the main
Commerce building and brought to us by courier. Visitors should come to the first address, which is
about 7 blocks north of the main Commerce Building.
1. Submissions Via Package Delivery Companies:
Foreign Trade-Zones Board
U.S. Department of Commerce
Franklin Court Building - Suite 4100W
1099 14th St. NW, Washington, D.C. 20005
2. Submissions Via the U.S. Postal Service:
Foreign Trade-Zones Board
U.S. Department of Commerce
FCB - Suite 4100W
1401 Constitution Ave. NW
Washington, D.C. 20230
3. SECURITY
Once again, I wish to remind you that security continues to be a top priority. Customs is now
part of the U.S. Department of Homeland Security. Its new name is the Bureau of Customs and
Border Protection. Though all of you will continue to work with your local Customs/Border
Protection (CBP) port director as before, there is a greater focus on security. We recognize
that FTZs have provided a secure environment in the past, and we expect that, with the
cooperation of zone grantees, operators and users, FTZs will continue to do so. FTZs already
are subject to security requirements that exceed those required of importers in general. For
example, FTZ operators are responsible for the safekeeping of merchandise that is admitted to
zones and they must establish procedures that are consistent with CBP security standards and
specifications. (See 19 CFR Sec. 146.4 of the CBP regulations.) In addition, key personnel of
companies operating FTZs, including subzones, are subject to CBP background checks.
FTZ grantees and operators have a special responsibility to take extra care to ensure security
within their zone project. Grantees and operators should be aware of all parties using the zone
and of all activities occurring within the zone, conducting periodic inspections of active zone
facilities. They should contact their Customs port director if they have any concerns. We ask
that FTZ grantees and operators review and follow the guidelines in the security bulletin
published by Customs and posted on our web page (http://ia.ita.doc.gov/ftzpage/customs.html).
4. EXPORT FIGURES; REPORTING MATTERS; CENSUS; WEB PAGE
Export Figures. As we mentioned last year, export figures should be based on the zone operator’s
knowledge of destination. This means that, for FTZ reporting purposes, grantees or operators, to
the best of their knowledge, should report as exported any merchandise that is eventually
exported, even though the merchandise may leave the zone on a consumption entry prior to
export. We are aware that some subzone operators are electing to make entry for consumption
for duty-free products when they leave the zone, even though some products are later exported.
If the products are later exported by the company or an affiliate, or used as the basis for a
drawback claim, the products must be reported as exports, under the "Forwarded, To Foreign
Countries" heading. Such data may be estimated or derived from existing annual data. In
general, the figures for the FTZ annual report can be derived from existing data, including
data available from an operator’s Customs inventory system, which tracks foreign status
merchandise, and existing company information.
Narrative Section. The narrative section of the report has been getting greater attention
because it is the section where zones and subzones describe how FTZ status is contributing to
the positive economic effects that were the basis of approval. I urge you to focus on this
section. You may answer the questions in a single narrative format that can be attached to the
report and updated year to year. This may be easier than answering each question individually.
Census. As we have mentioned previously, statistical data on merchandise admitted into foreign trade zones
must be reported to the U.S. Census Bureau (Census Bureau) on a CF-214A or electronically via
the Automated Foreign Trade Zone Reporting Program (AFTZRP), and all merchandise exported must be reported on a
Shippers Export Declaration (SED) or electronically through AES/AES Direct. I want to draw
particular attention to the Census Bureau's AFTZRP. Arrangements have been made with the Customs
and Border Protection (CBP) to allow for direct reporting to the Census Bureau of statistical
data on goods admitted into FTZs. Companies electing to submit their statistical data directly
to the Census Bureau will provide the data via the File Transfer Encryption System (FTP). FTP utilizes
the internet and the Pretty Good Privacy Encryption software which makes this system an
easy-to-use internet-based system that is free, fast and the most secure way of submitting your
CF-214A statistical data to the Census Bureau. Additional information can be found on www.census.gov/foreign-trade/aftzrp.
Also, CBP and the Census Bureau have developed a free internet-based system called AESDirect for
filing SED information electronically to the Automated Export System (AES). Additional information concerning AESDirect
can be found on www.aesdirect.gov. I believe each of
these programs will not only improve the timeliness and accuracy of our trade data but also
improve reporting efficiency for zone users as we move toward full automation. If you have any
questions concerning AFTZRP, please contact the Data Collection Coordination Branch at
301-763-2259. For questions concerning AES, please contact the AES Branch at 1-800-549-0595.
Lapse. Subzones are subject to the lapse provision individually. (See Lapse Guidelines on our
web page.) We are asking that grantees track their subzones with respect to the lapse provision
and report to us any subzones that become affected by the lapse provision. (Contact: Claudia Hausler
(202) 482-2862). We also ask that you list such subzones that have lapsed in your annual
report.
FTZ Web Page. We continue to update our web page based on suggestions from you. If you have
any comments or suggestions, or changes to your zone contact information, please contact Liz Whiteman at
Elizabeth_Whiteman@ita.doc.gov.
FTZ Staff. For those of you that have not had the opportunity to visit the FTZ Board staff recently, I would like to provide you with an updated list of our staff members. Our e-mail addresses are first and last names, separated with an underscore ("_"), plus "@ita.doc.gov".
