Memorandum For Foreign-Trade Zone Grantees
From: Dennis Puccinelli
Executive Secretary
Subject: 1. FTZ Annual Report for FY 2000
2. Reporting Export Figures and Other Reporting Issues
3. Submission of Zone Schedule
4. Census; Web Page; Monitoring
1. Annual Report
I want to express our appreciation for the effort most grantees have been
making to submit their reports on time, and to respond to questions that
we have. We ask for your continued attention to this requirement because
we can meet our goal for publication and distribution of our report to
Congress and to you only if we have your full cooperation. Further,
compliance in this area is key to our responding to your applications
and requests.
Therefore, 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
2000 report is the usual end-of-January date (1/31/2001). A copy of the
current format is enclosed. (It is the same as the one we sent you
last fall.) The format is available on the FTZ Board Web site along
with application guidelines and other information on FTZ matters.
Note that there is a shorter FTZ page web address:
http://ia.ita.doc.gov/ftzpage/
The web address we previously provided (below) continues to be valid
and also will link you to the FTZ web page:
http://www.ita.doc.gov/import_admin/records/ftzpage/
If you wish to obtain a copy of the annual
report format from our Web site, we suggest you download the
WordPerfect version and apply the Times New Roman font - 12 point. (If
you decide to use the text version, we suggest that you convert it to the
Times New Roman font so that it will conform to the original format.) We
ask that each grantee pass the new 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.
Annual reports should be addressed to:
Executive Secretary, Foreign-Trade Zones Board,
U.S. Department of Commerce,
14th St. & Pennsylvania Ave. NW, Room 4008,
Washington, D.C. 20230.
Our requirements for the annual reports we receive from each zone
grantee have been reduced in recent years as part of our efforts under
the government’s regulatory reform initiatives. In addition to shortening
the format, 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).
2. Reporting Export Figures and Other Reporting Issues
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 a number of products in the information technology, pharmaceutical
and petroleum sectors are duty free and many subzone operators are
electing to make entry for consumption for such products when they leave
the zone, even though some products are later exported. If the
products are later exported by the company or 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. For example, Refinery
A is one of three refineries of ABC Refining which produces coke (all
of which is entered for consumption). It is known that ABC Refining
exports 50 percent of its combined coke output on an annual basis.
Refinery A would attribute half of its coke output to exports.
In general, the figures for the FTZ annual report can be derived from
existing data, including the operators Customs inventory system, which
tracks foreign status merchandise, and existing company information.
We have attached our guideline for reporting these figures.
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 eight questions in a single narrative format that can be
updated year to year. This may be easier than answering each question
individually.
Grantees should be reporting on the status of sites in their annual
report. If the status of a site or portion thereof changes to the
extent that it is no longer usable for FTZ activity (e.g., becomes
residential or retail), grantees should consider removing it from
the zone (possibly using minor boundary modification procedures).
Subzones are subject to the lapse provision individually. 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.
3. Submission of Zone Schedule
This is a reminder (following my letter of 1999) that, as part of our
zone monitoring efforts, we are requesting that all grantees with active
zone projects, submit a copy of your complete, current zone schedule.
This request applies to all grantees, even if you have recently
submitted a schedule/update. Most grantees have complied and we
appreciate your cooperation. For those who have not, I am attaching
a checklist to assist you in evaluating whether your schedule is
complete (See "Zone Schedule Checklist").
(We do not need to see a copy of the zone operations manual that
zone operators prepare for Customs.) Please ensure that the schedule
covers all aspects of zone operations, including each site and each
operator if separate rates apply. The zone schedule should cover all
zone policies, charges or fees collected by the grantee, charges or
fees collected by operators, charges or fees to subzones, and any fees or
charges for use of zone space. The zone schedule should be available for
public inspection at the zone headquarters and at the offices of each
operator, and such sites should be indicated in the schedule.
4. Census; Web Page; Monitoring.
As many of you know, statistics may be directed to Census
electronically instead of on the CF-214 (statistical section of the
CF-214). If you have any questions on the requirements related to
Census statistical reporting, contact the Census Bureau or your
U.S. Customs Port Director for further information. If you have
any questions on the Automated Foreign Trade Zone Reporting Program,
please contact Gloria Thomas on 301-457-2259. If you have questions on
the Automated Export System, please contact Dorothy Brown on
301-457-6855. If you have any questions on Census data products,
please contact Adele Hilton on 301-457-2311.
We have further improved our web page adding a section with up-to-date
Federal Register notices and a section with older archived notices
(back to 1980). We have also added two types of zone list: one is
our summary list, and the other is the list on the National Export
Directory. We have also added a bulletin board where we will post
recent letters to grantees and other documents of interest. Note
that there is a list of lapsed zones and subzones on this site.
As you are aware, the FTZ staff has increased the number of on-site
zone monitoring visits it conducts each year. We have prepared
guidelines which are used by the FTZ staff in its conducting of such
visits, and we have made the guidelines available to zones. (The
“On Site Monitoring Guideline” is attached). We suggest that all zone
grantees and operators use the guidelines to conduct a self check to
help ensure compliance.
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”.
Kathleen Boyce Pierre Duy Camille Evans Diane Finver
Claudia Hausler Yvette Jenkins Jean Lewis Andrew McGilvray
Dennis Puccinelli Elizabeth Whiteman
