Foreign
Trade
Zone
No. 49
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Foreign Trade Zone 49: Benefits, Types, and Activities, Schemes and Mind Maps of Psychology
An overview of Foreign Trade Zone (FTZ) 49, a secured area in the United States where foreign and domestic merchandise is considered to be in international commerce. FTZ 49 is managed by the Port Authority of New York and New Jersey and offers benefits such as duty exemption, deferral, and reduction. There are two types of FTZ sites: General Purpose Zones and Subzones/Usage-driven sites. The primary activities carried out in FTZ 49 include production and manufacturing, warehousing and manufacturing, and the zone includes user classifications for importers, exporters, and manufacturers.
Typology: Schemes and Mind Maps
2021/2022
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Foreign
Trade
Zone
No. 49
What is a
Foreign
Trade
Zone?
A Foreign Trade Zone (FTZ) is a
secured geographical area in the
United States in or near a U.S.
Customs Port of Entry. Within
an FTZ, foreign and domestic
merchandise is generally
considered to be in international
commerce and outside of U.S.
customs territory.
There are
two types
of FTZ sites:
(^) General Purpose Zones operate as public utilities, providing a variety of services to multiple zone users. They are usually located at ports or industrial parks.
(^) Subzones/Usage-driven sites are single-use facilities approved for a specific company or use.
The Port Authority of New York and New Jersey serves as the
Grantee of Foreign Trade Zone 49, handling administration
and management of the zone and serving as the middleman
between the operator and the Foreign Trade Zone Board.
Benefits offered through FTZ 49:
(^) Duty Exemption on re-exports - If an imported good is exported from the FTZ, no Customs duty is due.
(^) Duty Deferral on imports until they leave the zone and enter U.S. Customs territory.
(^) Duty Reduction on the products entering U.S. Customs territory at the duty rate that applies to its finished condition.
(^) Merchandise Processing Fee (MPF) Reduction for zone users that can file a single entry for all goods shipped from a zone in a consecutive seven-day period.
(^) Streamlined Logistics for users presenting the opportunity for imports to be delivered directly to the zone as well as requested permission to break and affix Customs seals.
Foreign Trade Zone 49
(^) Quota Avoidance granting zone users access to potentially discounted inputs and the ability to admit merchandise as soon as a new quota year begins.
(^) Streamlined application process.
Alternative Site Framework (ASF)
provides participating zones the
flexibility to use a simpler, faster
Minor Boundary Modification
(MBM) procedure to designate
locations where companies are
ready to use an FTZ.
(^) General Purpose Zones
(^) Sub-Zones (^) Usage-driven Sites
Two primary
activities are
carried out
in FTZ 49:
(^) Production and manufacturing. Activity involving foreign merchandise or activity involving a change in the condition of the article which results in a change in the customs classification of the article or in its eligibility for entry for consumption. The activity must be authorized by the FTZ Board.
(^) Warehousing and manufacturing. Goods within an FTZ may be landed, stored, handled, manufactured or reconfigured, and re-exported under specific customs regulation and are generally not subject to customs duty.
(^) Retail trade is prohibited in FTZs.
FTZ 49 User Classifications include: